COUNTERPUNCH The great dollar collapse debate Mike Whitney argues that the dollars doomsday is not as much dependent on the deficits as most people believe,but the economy. Rather,when deficit is made a big deal of,it creates pressure on the governments to hold back from doling out stimuli,which is what the economy needs desperately. Blame it on the media for convincing people that we are in a recovery and that green shoots are sprouting up everywhere. Its pure fiction. The country could still wind up in a Depression when the stimulus wears off. And its wearing off very quickly, the author writes. If the US federal bank cuts off the money supply,it will lead to job losses,defaulting banks and financial institutions,prices falling across the board,leaving the economy in a ditch. IN THESE TIMES Its about time for a showdown with the banks In the backdrop of the financial bailout of banks,saving them from a near collapse,the author,David Moberg,takes a look at recent measures undertaken by the US government to rein in the bankers obnoxious salaries. He argues they still fall short of what is required and thus a showdown with the banks is in the offing. So the showdown in Chicago will be important if its the first of many mobilisations to put the finance system in its place,serving the growth of the real economy and the incomes of most American workers. Its either that or submit to the wisdom of Goldman Sachs International vice-chairman Lord Griffiths that people should tolerate the inequality as a way to achieve greater prosperity for all. RED PEPPER Reclaiming our food system In an editorial,the UK-based magazine makes a case for food sovereignty while arguing that the globalisation of agriculture over the past 30 years has placed the food system in the hands of multinational corporations. However,it has met with opposition from the co-ordinated movement of small producers trying to reclaim democratic control of that system. Climate change demands that we localise our food systems in the global North too,but progressives can tie themselves up in knots when trying to marry this with the Souths current dependence on food exports. Food sovereignty could provide the solution to this,boosting local and regional trade and ending the Souths subordinate role in the global food economy. PEOPLES DAILY ONLINE Strong Dollar or Weak Dollar? The free-falling dollar and little attempts by the US government to stem its fall,despite public posturing on having a strong dollar,could be explained by the USs attempt to reduce its debts while providing a short-term boost to its exports. The author Li Hong argues that a weak dollar will be the magic weapon by which America can expand the export of its goods to all trading partners. The trajectory is able to earn more proceeds from trade and keep manufacturing jobs at home. This is so good a strategy that Fed officials are expected to vigorously pursue it while only paying lip service to the strong dollar rhetoric. But this could spell trouble for China,the author notes,as the US may try for more trade safeguards,like levying excessive duties on Chinese tyres,to prevent influx of foreign goods from outside American borders. After all,grievance of job loss during an economic downturn is the least President Obama wants to hear.
