Thursday, August 18, 2016

With out a mechanism ....

Okay trade across borders will produce imbalances

The global system has to maintain local full tilt social production despite local trade deficits
Forex alone is not enough

Localities need global funding for fiscal deficits as well as trade deficits

Since total surplus equals total deficits
But the system will not self rectify along an optimal path
The corrections must come by overt global action
And unfailing system wide local cooperation

So long as MNCs profit  thru dynamic gaps ....

We have a structural contradiction eh !