Asian Producers and Consumers

["John Gelles" <johng@xxxxxxxxxx>]

    Henry Liu is waiting for something that won't happen--
    a US and EU depression.

    However it does not need to happen-- for Japan
    and China to become the largest producers and
    consumers of wealth on earth.

    Henry used the expression "predatory game".
    Political economy is not necessarily that. It is
    fundamentally the way we make a living.

    When Japan and China cooperate to allow the
    billions of consumers there (and worlwide too)
    to enjoy a middle class lifestyle, the end of their
    "financial" problems will be apparent. (Non-
    performing debt is always a candidate for
    reorganization; and credit is all that's necessary
    for Chinese families to consume all that Asia
    and a world economy can offer--that is,
    consume this in fair proportion along with the
    rest of planet earth.)

    As the euro and yen draw equal to the dollar,
    (and later maintain a fair value in relation to
    output in their markets), the US will regain its
    position as a manufacturer in the heavy
    industries temporarily sent to Asia, India,
    and other low labor cost places.

    The final shape of a half dozen markets,
    (like the Americas, Europe, Russo-India, East
    Asia, Africa, and one that shapes up, not on
    a geographical map refelcting transportation
    cost, but on a technology map connected
    only by communications), will see the end
    of history--not as the triumph of capitalist
    fundamentalism--but rather more like the
    cooperatives represented by the world's
    great literature and science.

    Liu and Davidson look for and see a new
    money to help end poverty and war. It may
    be that China and Japan will copy the euro
    to create the asiao. Then, for a while, the
    dollar, euro and asiao can be remodeled to
    perform the miracles of a taxless, debtless
    fiat money, as legal tender in certain nations
    and useful everywhere else.

    The WEF brainstorms. Nations make war
    and make law.  By the time we get to the end
    of this war I think we may have absorbed the
    lesson of WWII: "A nation can afford anything
    it can produce."
            There is no such permanent thing as
            "finance capitalism"--it is an illusion
            waiting to fade with the price of tulips.