In the first three segments of this six part interview we’ve heard Jane D’Arista, author of The Evolution of U.S. Finance: Federal Reserve Monetary Policy: 1915-1935 and research associate with the Political Economy Research Institute (PERI), University of Massachusetts at Amherst, talk with Paul Jay about the end of the American consumerism as the driving ‘engine’ of the global economy, and about the decades long development of the offshoring of labor and the companies that have been doing that attempting to continue profiting by selling their goods back into a US market with steadily declining disposable income – – – finally arriving at the point where massive government bailouts of the financial sector have been used to keep the illusion of a prosperous economy afloat at the expense of the average person, but that US workers wages are too low and there is no longer the cheap credit available to keep the system going that has been enabling people to live the ‘American Dream’ through debt, and why other countries are both unlikely and unwilling to take the place of the US as that importer of last resort that is needed to keep the illusion alive.
In this fourth segment D’Arista goes further in her conversation with Jay to give us the broad outlines of a solution she proposes to help reorganize the US and global economies – “an investment fund…in which you can attract, also, not only the savings that end up in central banks and government treasuries around the world, but the private savings, the important private savings, which are pension funds, not only in the US and other developed countries, but also in emerging market countries where pension funds are growing like crazy and they have no place to put them”, an alternative in a world where “politicians in the US, but certainly not only the US, in much of the world-are so entwined with the finance sector that the politics is pretty much as parasitical as the banks”
Real News Network – April 20, 2010
Can US dollar remain world’s currency? Pt.4
D’Arista: The world wants a new reserve currency – would be good for Americans too