An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Pages
▼
Pages
▼
Sunday, September 22, 2013
Scott Kaufman —Pope Francis lashes out at world economic system for worshiping a ‘god called money’
Pope Francis plays hard ball. Most interestingly, this was extemporaneous, from the heart. Previously, popes have seldom done that.
My wife was in Puerto Rico last summer visiting her parents, and her impression is that Latin Americans have turned their attentions entirely southward. They watch only the Latin American television stations, and they are gaga for the pope. The era of US cultural allure and imperialism seems over. There is an ongoing global rejection of the perverse extremism of the US economic system and its cultural ethos of radical anti-social individualism. US neoliberal capitalism is the god that failed.
Yeah, my impression is that the neoliberals concluded that since communism was dead, the world was just going to adopt the neoliberal view and join the American Empire, with some nudging if need be.
Well the common citizens may be looking away from the US but Tom look at the post just above this one the Venezuelan leadership is borrowing, I assume, US DOLLARS from the Chinese who have hoarded a lot over the years in order to finance Venezuelan: "homes, and invest in agriculture, transportation, industry, roads, electricity, mining, health, science and technology...."
LOL!
I'd assume they are not borrowing Venezuelan bolivars.... or Chinese yuan (I assume, maybe they are?)...
they have to use USDs as a "mother may I..." before they can have housing in Venezuela????
If they are borrowing USDs which neither of these countries are sovereign in, then this is just like the same old same old but instead of the Wall St banks lending the Latin American countries the USDs its the Chinese...
Now if this eventually blows up like the previous Latin American debt crisis did back in the 90s, now THAT may get dicey as China will have to collect on the defaulted USD liabilities... is the US going to stand by and watch that kind of legal enforcement action?
Its never a good idea for entities to establish liabilities in currency that they are not sovereign in either as borrower or lender... we should be counseling both of these countries against this deal....
Venezuela is dependent on imports, which they pay for by exporting mainly oil in exchange for dollars and other international reserves. External demand for Venezuelan Bolivars is very weak.
I'm not even Catholic but I love this guy.
ReplyDeleteMy wife was in Puerto Rico last summer visiting her parents, and her impression is that Latin Americans have turned their attentions entirely southward. They watch only the Latin American television stations, and they are gaga for the pope. The era of US cultural allure and imperialism seems over. There is an ongoing global rejection of the perverse extremism of the US economic system and its cultural ethos of radical anti-social individualism. US neoliberal capitalism is the god that failed.
ReplyDeleteYeah, my impression is that the neoliberals concluded that since communism was dead, the world was just going to adopt the neoliberal view and join the American Empire, with some nudging if need be.
ReplyDeleteWell the common citizens may be looking away from the US but Tom look at the post just above this one the Venezuelan leadership is borrowing, I assume, US DOLLARS from the Chinese who have hoarded a lot over the years in order to finance Venezuelan: "homes, and invest in agriculture, transportation, industry, roads, electricity, mining, health, science and technology...."
ReplyDeleteLOL!
I'd assume they are not borrowing Venezuelan bolivars.... or Chinese yuan (I assume, maybe they are?)...
they have to use USDs as a "mother may I..." before they can have housing in Venezuela????
If they are borrowing USDs which neither of these countries are sovereign in, then this is just like the same old same old but instead of the Wall St banks lending the Latin American countries the USDs its the Chinese...
Now if this eventually blows up like the previous Latin American debt crisis did back in the 90s, now THAT may get dicey as China will have to collect on the defaulted USD liabilities... is the US going to stand by and watch that kind of legal enforcement action?
Its never a good idea for entities to establish liabilities in currency that they are not sovereign in either as borrower or lender... we should be counseling both of these countries against this deal....
rsp,
Matt,
ReplyDeleteVenezuela is dependent on imports, which they pay for by exporting mainly oil in exchange for dollars and other international reserves. External demand for Venezuelan Bolivars is very weak.
China wants the RMB to be a reserve currency, so the deal may actually be in terms of yuan and not USD.
ReplyDelete