Dix Sandbeck - From the Files


A View of Globalization from a Caribbean Beach. Z Magazine , May 2004. 

When some obscure comrades in charge of managing the Soviet Union's hard currency foreign reserves in the 1950s opened a bank in London and created the eurodollar they became the unlikely originators of modern global financialization. Read
Bretton Woods and the Forgotten Concept of International Seigniorage. Journal of COMER. Toronto, Sep 2003
At Bretton Woods, Keynes fought for the establishment of an international reserve currency. In the end he lost out and the US dollar has been the World's de facto reserve currency ever since. This has allowed the US to have a free lunch of international seigniorage, which stems from the demand for international reserves that growing trade and trans-nationally held wealth creates. Read
Keynes speaks at the Bretton Woods Conference, 1944

After Kurt Tucholsky
The Newspeak of Economics.  Journal of COMER. Toronto, Dec 2003
If rising income inequalities cause wealth to grow above the rate of growth of the real economy it can lead to asset inflation. It is too much wealth chasing the same pool of investment assets. It is liable to generate bubbles which when they burst threaten to destroy much of the wealth again but also spill into the productive economy with unemployment to follow. A main goal of conservative tax cuts is to manufacture deficits so that government debt instruments can absorb the excess wealth and reduce asset inflation. Read
The New Asset Economy Journal of COMER. Toronto, May 2005
Offshoring in manufacturing has in recent years been followed by a similar trend in service industries. Increasingly, GDP growth in the new asset based economy are lifted by the financial sector. This is reflected in rising incomes and wealth holdings at the top. In contrast, incomes earned in the real sectors -- products and service industries upon which ordinary households mostly depends for their incomes have been stagnat.
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