[OPE-L] Credit crunch

From: Jurriaan Bendien (adsl675281@TISCALI.NL)
Date: Mon Sep 10 2007 - 18:06:20 EDT


Hi Paul,

Sure, a lot of Argentinians were ripped off, but as I have argued before,
exploitation is a wider concept than the rate of surplus value. I am not
very knowledgeable about Argentina, but this crisis should be studied by
anyone interested in the theory of "capitalist collapse".

I said, "with the aid of new credit". In 2006, Argentina actually re-entered
international debt markets, selling US$ 500 million dollar-denominated
bonds, mostly to foreign financial institutions. However, Goldman Sachs
complained that "Instead of trying to restore its credibility with the broad
capital markets, the government keeps on relying on Venezuela as its main
credit supplier" (WSJ July 28, 2006). Argentina now owes Venezuela about
US$4 billion or so (La Nacion, 28 July 2006).

Supposing that the US attacked Venezuela, it would probably have quite a
strong financial "ripple effect". It illustrates one "equilibrium problem"
in Pentagon thinking - how and what can you actually attack, without
destabilising the markets, and making all the problems you are trying to
solve, worse? The answer to that seems to be, that you attack, when there is
already a destabilised situation of some kind, in order to stabilise it. Or
maybe, you create a "targeted" destabilisation first, and then you try to
stabilise it militarily, installing a new regime. But whatever you do, it
has to involve a lot of different players.

Robert Gates recently stated an awareness that: "Reaching [our] goals cannot
be achieved by any one nation alone - no matter how wealthy or powerful. And
they certainly cannot be achieved solely by military means. To do all this,
we all - the United States, Egypt, and other key players in the region -
must be engaged. And we must lead. And we must work together." (speech in
Cairo, April 18, 2007).

Jurriaan


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