Re: China

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

While small, unbalanced economies ae trapped as victims of compulsory export
in the golbal trading system, that fact does not itself argue for export as
a policy of growth.  One way such small econmies can overcome this
disadvantage is to join a regional trading block.  The notion that economies
can export themselves out of recessions has been proved false
in the past decade.  The fixation on export can lead to domestic economic
and monetary policies that prevent or slow domestic growth. The fundamental
fault of neoliberal market fundamentalism is that the rich dictates the
structure and terms of the market to further enrich the rich, turning the
world trade system into a form of neo-imperialism.

Henry C.K. Liu
Bruce McFarling wrote:

> On 06 Mar 2002 20:12:17 -0800, Wed, 06 Mar 2002 23:21:58 -0500
> Warren Mosler <mosler@xxxxxxxx> wrote:
>
> >Relying on exports for what?  Debt service that can be ignored without
> >penalty?  Exports are the costs of imports, not some kind of 'benefit.'
>
> Relying on exports to finance the growth in imports that are an
> inescapable concomittant of growth in small, open economies.
> Take, for example, the small Caribbean micro-states of the
> Eastern Caribbean ... with imports corresponding to half or
> more of GDP, the external finance constraint is something
> that bites quick and hard.
>
> Virtually,
>
> Bruce McFarling, New Lambton, NSW
> ecbm@xxxxxxxxxxxxxxxxxxx