IDEHESI   22109
INSTITUTO DE ESTUDIOS HISTORICOS, ECONOMICOS, SOCIALES E INTERNACIONALES
Unidad Ejecutora en Red - UER
artículos
Título:
Geopolitical value of the us dollar and peripheral countries
Autor/es:
PABLO ALEJANDRO NACHT
Revista:
The Africa-Asia-Latin America Scholarly Collaborative Program. ISBN: 978-987-1183-88-3
Editorial:
CLACSO - Programa Sur-Sur
Referencias:
Lugar: Buenos Aires; Año: 2008 vol. 1 p. 1 - 16
Resumen:
<!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0cm; margin-bottom:.0001pt; mso-pagination:widow-orphan; mso-hyphenate:none; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-fareast-language:AR-SA;} @page Section1 {size:612.0pt 792.0pt; margin:70.85pt 3.0cm 70.85pt 3.0cm; mso-header-margin:36.0pt; mso-footer-margin:36.0pt; mso-paper-source:0;} div.Section1 {page:Section1;} --> The present path of the US economy and its currency, will precipitate a domestic as well as a global recession. It cannot only curtail this deficit by depreciating the dollar, since, apart from being difficult to achieve in a world with "market determined exchange rates", this will induce inflationary pressures, and entail wealth losses, both of which will jeopardize the position of the dollar as the reserve currency, and threaten the stability of the system as a whole. The new phase of imperialism in short has brought the system to the brink of a major crisis. The financial bubble can drown the real economy upon which is based and which is its reason of being. In spite of its aparent self-sufficiency, what actually circulates through the financial markets are only  securities created by the real economy (labour and intellectual work), since stocks, bonds or any other financial tools only represent the values of the companies or assets in general. These tools are only bonds without intrinsic value. Financial speculation, however, can deviate completely the real interests inherent to the growth of a certain economy. And yet what is remarkable about the new phase of hegemony is that it justifies the adoption of neo-liberal policies, on behalf of eliminating poverty. State sector assets are privatized in the name of improving "efficiency" which is supposed to usher in faster growth and eliminate poverty. In this scenario the question is whether capitalism will have the ability to leave behind the magnitude of this Depression. The answer will be dependant, on the one hand, if there are still suitable conditions to encourage economic growth under the present economic rationality. The answer, basically, will depend on the capability of capitalism to set aside the speculative investment, unproductive and redistributive, and head towards production.