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Re: Can BRICS Fly?
I think this persecutive has a flaw. If you look at how corrupt and kleptocratic they are then its more convincing. The problem is the US is becoming more like them. I am told by my sources from overseas that the US still has a lot of ethics and trust in comparison, but its not what it was.
Originally posted by GRG55
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They can't Escape from...the Dollar. And they know it.
Hudson would be a more effective commentator if he hadn't become so mono-dimensionally dogmatic.
All five BRICS, along with a host of other countries, want a greater say in many aspects of global governance. The mechanisms for global governance are the multilateral institutions, and in the case of global economic governance those include the World Bank and the IMF.
Does anybody seriously think that is going to change just because the leaders of five openly corrupt, kleptocratic, oligarch-birthing nations get into a snit and take some of their toys off to find another playground? I'll believe the founders of the BRICS Bank are serious about "escaping the Dollar" when they resign from participation in the World Bank and IMF.
Hudson would be a more effective commentator if he hadn't become so mono-dimensionally dogmatic.
All five BRICS, along with a host of other countries, want a greater say in many aspects of global governance. The mechanisms for global governance are the multilateral institutions, and in the case of global economic governance those include the World Bank and the IMF.
Does anybody seriously think that is going to change just because the leaders of five openly corrupt, kleptocratic, oligarch-birthing nations get into a snit and take some of their toys off to find another playground? I'll believe the founders of the BRICS Bank are serious about "escaping the Dollar" when they resign from participation in the World Bank and IMF.
...PANITCH: So, I’m sorry, I don’t see the world in terms of competition amongst the capitalist classes of the world in the sense you’re speaking of. I think there is a very deep integration on the part of the leading capitalists in these countries, including the domestic ones, into globalization. I think that’s true of Vale in Brazil.
JAY: That’s the world’s largest iron ore company.
PANITCH: That’s the world’s largest iron ore company, which, sure, is competing with other iron ore companies. But it doesn’t see itself as aligned against the American bourgeoisie or the American capitalist class. This is not right.
And moreover, I think that these capitalist classes very much want access to the deep financial markets of London and New York. They don’t want to leave them; they want to be part of them. They want access to them. Indeed, they’ve been floating bond us in those markets–dangerously, in terms of volatility. So I think–and it has to be said the reason they do so is that their financial markets, their bond markets, even the European bond market relative to the London/New York access, remain extremely weak, extremely vulnerable. So it’s also a matter of where the deep institutional strength of capitalism is.
I would make one other point. I don’t think that finance, even Wall Street and London–the City of London finance is merely parasitic. I think it facilitates, it underwrites, it’s very important in terms of hedging for all of the integrated production that goes on between China and the United States, between South Africa and Europe. This plays a functional role for all these value chains. Of course there’s loads of speculation in this, but it means that industry is linked up with this speculation. These aren’t separated compartments. And you can’t unscramble them.
HUDSON: I see that I’m emphasizing the geopolitical much more than you of nobody’s talking about Brazil and other countries not interacting with the London and New York money markets. What they don’t want to do is to have the U.S. government and U.S. banks act as a threat, a threat against their countries. And of course they’re trying to keep their–have other options apart from being tied into the U.S. as a system of control. They want to break free of U.S. control, basically, and European control is a satellite of the United States.
PANITCH: Yeah. But since politics and economics aren’t so easily separated, their continuing interest and increased interest in being linked economically and financially means that the American state, given its superintending role of Wall Street and the City of London, will continue to have power vis-à-vis them. They would like to, as we’ve agreed, they’d like to have more room for maneuver in the face of that enormous power of the American Empire, but they are not interested in breaking from it.
JAY: That’s the world’s largest iron ore company.
PANITCH: That’s the world’s largest iron ore company, which, sure, is competing with other iron ore companies. But it doesn’t see itself as aligned against the American bourgeoisie or the American capitalist class. This is not right.
And moreover, I think that these capitalist classes very much want access to the deep financial markets of London and New York. They don’t want to leave them; they want to be part of them. They want access to them. Indeed, they’ve been floating bond us in those markets–dangerously, in terms of volatility. So I think–and it has to be said the reason they do so is that their financial markets, their bond markets, even the European bond market relative to the London/New York access, remain extremely weak, extremely vulnerable. So it’s also a matter of where the deep institutional strength of capitalism is.
I would make one other point. I don’t think that finance, even Wall Street and London–the City of London finance is merely parasitic. I think it facilitates, it underwrites, it’s very important in terms of hedging for all of the integrated production that goes on between China and the United States, between South Africa and Europe. This plays a functional role for all these value chains. Of course there’s loads of speculation in this, but it means that industry is linked up with this speculation. These aren’t separated compartments. And you can’t unscramble them.
HUDSON: I see that I’m emphasizing the geopolitical much more than you of nobody’s talking about Brazil and other countries not interacting with the London and New York money markets. What they don’t want to do is to have the U.S. government and U.S. banks act as a threat, a threat against their countries. And of course they’re trying to keep their–have other options apart from being tied into the U.S. as a system of control. They want to break free of U.S. control, basically, and European control is a satellite of the United States.
PANITCH: Yeah. But since politics and economics aren’t so easily separated, their continuing interest and increased interest in being linked economically and financially means that the American state, given its superintending role of Wall Street and the City of London, will continue to have power vis-à-vis them. They would like to, as we’ve agreed, they’d like to have more room for maneuver in the face of that enormous power of the American Empire, but they are not interested in breaking from it.
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