27 April 2003


The whole "liberal" critique of Dubya's economics is overly focused upon the critique of tax cuts. The tax cuts are bad, but they are only the tip of the iceberg of a global economy arranged for the first-and-last purpose of buttressing corporate profits.

Instead, its advocates should proceed to the more radical focus upon the possibility that US hegemony will eventually end, because someday, someday, the world will refuse to accept the US Government's treasury bonds. Hudson's theory explains, at least, why the world tolerates US government adventurism, rampant US national debts, and "Washington Consensus" economic policies that make the world into a big museum for corporate looting. America is the "consumer of last resort" for the world's production machines, and thus if the world were to stop giving the US government a free ride in using the planet as its bottomless bank account, the US economy and global economies would separate, and the global economy would tank. The global belief in capitalism is what holds the whole farce in place. So the world accepts a steadily-worsening global economy as the price of business, which allows the US to blackmail it with unapproved invasions, right-wing politics, Argentina, etc.

I find Hudson's theory believable because it fits the phenomena of US hegemony and $6 trillion US national debt into the Harry Shutt economic theory that explains the global economy in terms of a world organized for the sake of corporate profit. Ecosocialism would end the whole issue by ending the dollar's hegemony with a general forgiveness of debts and a phasing out of the money economy. The whole house of cards will eventually collapse. The world, then, needs to admit that it is playing a game with a limited time-frame -- eventually, the US will kill the global goose that lays golden eggs for corporate consumption, and it will all be over. Admitting this is the first step toward the negotiation of a new global economic order, which will hopefully be something closer to ecosocialism than what we now have.


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