In
the first half of 2023 an extraordinary situation, with international
geopolitical consequences, developed in the US economy. Its own official
data showed that the US was wearing out more capital than it was
producing. In the second quarter of 2023, in annualized figures, US
capital creation was $4.5 trillion but depreciation was $4.6 trillion.
Therefore, rather startlingly, in net terms, the world's No.1 capitalist
economy wasn't producing any capital! The seriousness of this is shown
by the fact that it has only occurred twice before in US history - in
1931-34, the depth of the Great Depression, and 2008-10, the worst
period of the Great Financial Crisis.
The reasons this had such
large international political implications, however, lay in why if the
US was consuming more capital than it created it could continue to grow.
This was because the US was using capital produced by other countries
to finance its own growth.
In precise figures, US data shows
that in the second quarter of 2023 it utilized $850 billion of capital
created in other countries to finance its own investment. The inevitable
international impact of this was therefore that this $850 billion of
capital couldn't be used by the countries that created it for their own
national development. In objective terms, the US was acting as an
economic "parasite" - the world's largest economic parasite. In
technical economic terms, a country depending for financing development
on capital from other countries may be termed to have a "parasitic mode
of capital accumulation."
Anonymous
3 comments:
Dedollarisation is the solution. Without the ability to print toilet paper to exchange for the hard earned capital of others or the realisation of others that their currency and bonds are useless, the world's biggest economic parasite will starve. Every country should do its bit to dedollarise and stop buying their financial instruments. Without capital, the leech cannot finance any wars, maintain its 800+ military bases and it will lead to peace on earth.
https://youtu.be/N9Eimbkif_8?si=p6Kvyu4xbww7G4qn
100 bases also no use lah.
China's Rockets Brigade will demolish you wholesale.
The USA has already demonstrated its parasitic behavior long ago, printing toilet papers in exchange for what the rest of the world produces. Like parasitic climbers on trees, they suck the nutrients from the trees that does all the hard work of bringing water and nutrients up to its branches. Like those parasitic bugs that suck the blood of animals and humans, they produce nothing but sucks the richness of what others have inside their body from their blood and sweat.
Isn't killing the US$ hegemony a good solution?
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