Thursday, December 10, 2009

There isn't much to say to introduce this, except to note that R. Taggart Murphy has written another extremely interesting article for Japan Focus: In the Eye of the Storm: Updating the Economics of Global Turbulence, an Introduction to Robert Brenner's Update*---so interesting that I don't know where to begin. After seeing and living the results of the financial crisis and the resulting economic fallout for the last year, it seems obvious that there are much bigger, more serious problems facing the DPJ and Japan (and the US) than the current Futenma issue. And I'll bet the latest "stimulus" won't change that.

Murphy discusses and expands on Brenner's ideas especially as pertains to Japan, China, and the US.

Just a few excerpts from the article:

...Brenner fully grasps the significance to global capitalism of what has happened in East Asia since the appearance of the export-led, state-directed Japanese growth model...

...“the premature entry of high-competitive lower cost producers, especially in the newly developing regions of East Asia” would have led to serious crisis were it not for the ability of advanced capitalist governments to make available “titanic volumes of credit.”

...the continuation of capital accumulation has come
literally to depend upon historic waves of speculation...

Japan had, from the mid 1950s on, deliberately staked its prosperity on the construction of excess global capacity in a series of key industries... ...Japan did not launch industries. Rather, it targeted markets that were already served by existing capacity... ...result was to destroy profitability...

He goes on to examine the current seemingly "bright spot" of China, and notes the country is heading toward the same "Mutual Assured Destruction" financial relationship that Japan and US have due to its up-to-now focus on an export-led economy and the reinvestment of profits into excess capacity and financing of US debt so that the US can continue purchasing those exports.

Now what was it that Obama has been running around the world saying about the world having to put an end to this sort of warped produce and loan/borrow and spend system?

*A link is also provided for Brenner's What's good for Goldman Sachs is Good for America: The Origins of the Current Crisis. At 73-pages, it is a bit long for reading on a computer, but is time better spent than reading about Tiger Woods' non-longer private affairs.

No comments:

Post a Comment