Thursday, June 9, 2022

Will the Global South break free from dollarized debt? — Pepe Escobar

In his latest book, economist Michael Hudson pits socialism against finance capitalism and tears apart the 'dream civilization' imposed by the 1 percent.
The Cradle
Will the Global South break free from dollarized debt?
Pepe Escobar

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David F. Ruccio | Professor Emeritus of Economics, University of Notre Dame


Footsoldier said...

Would take brave new leaders and get rid of the puppet regimes and imports that they can't produce by themselves to be priced in something else.

If Biden wants lower gasoline prices he is going to the wrong country. He needs to go to China and persuade them to start exporting products again. That would take down the backwardation in the market and ease prices.

China's exports rebounded in May let's see if it has an effect.

Footsoldier said...

One of the big problems the global South face trying to free themselves from $ debt is probably explained in this video.

Covers a lot of interesting ground and the problems that face the global South as they try and create a new system with other big players. Trying to replace the $ reserve currency would be a huge problem.

There's a lot of people underestimating how difficult it will be.

Peter Pan said...

Has he communicated with Fadhel Kaboub?

Footsoldier said...

Fadhel doesn't underestimate it. Just runs into the real power problem like everyone else.

Footsoldier said...

In the oil market there have only ever been 29 days when the difference between the lows and the highs for the day has been more than $8.

2008: 7
2011: 3
2020: 2
2021: 1
so far in 2022: 16

Footsoldier said...

Will Riddick created grassroots economics does a lot of work across Africa.

He was a econphysisist that modelled local economies and markets and decided to launch a range of Community Currencies and looking to put them on blockchain on people's phones.

It eliminates bank lending .

It is a community currency based on transactions only and runs parallel with the state currency. By using this new currency it allows the local community to use the state money as savings.

One currency to transact in and one currency to save in.

So when times are hard and there's no state money in the community they transact with the new parallel currency to get the goods and services they need from each other. Offer either goods or a service that then circulates the new currency. Works like the The UMKC Buckaroo currency the MMT'rs introduced in University of Missouri at Kansas City. But runs parallel to the state curency.

The community currencies are a genuine exchange of flows of value to each member of the community. Similar to James Watt, the Scottish inventor, came up with a new steam condensing boiler who didn't sell his boiler and his, and his pump to the Cornish tin mines, who had a pumping problem, a water pumping problem. He gave them the use of it in exchange for a third of the coal they saved.

Pumping as a service. it's a swap a smart swap. In return he got a % of the Tin the miners managed to save using his pump.

That to me sounds as if the new parallel currency is a barter credit. It helps that the communities are so poor there are no taxes. Trust drives it.

When he first started it be was thrown in jail by the government but they let him out and let him get on with it.

The idea has grown right across Kenya and these credits have now been issued right across the country.

How it works

Peter Pan said...

A parallel currency could be used in Canada, if municipalities were allowed to issue it.