File spoon-archives/marxism-international.archive/marxism-international_1997/marxism-international.9710, message 414


Subject: M-I: Re: Re: currencies, economic crisis and crisis theory
Date: Mon, 20 Oct 1997 20:45:08 -0700


Dennis please explain what keiretsu is.

Rebecca

++++++++++++++
There are no lessons to be learnt whatsoever, because the Southeast
Asian
model has not collapsed at all. These governments are going to
socialize
their banking systems, bail out their proto-bourgeoisie, devalue their
currencies, keep domestic interest rates low, and in short sacrifice
the
financial claims of their banks and real estate punters in order to
protect their industrial base. They got a bloody nose from privatizing
their systems too quickly, so all that's really happening is the
re-entrenchment of the Japanese keiretsu model. It's happened before,
and
it will happen again; Hong Kong experienced a horrendous stock crash in
the Sixties, again in the Seventies; Japanese firms regularly crashed
and
burned in the Eighties, only to be resuscitated by their keiretsu
parents;
South Korean firms went under by the fistful during the heavy
industrialization drive in the Seventies, only to be bailed out by an
iron-fisted technocratic Government and by the nascent chaebols;
Japan's
Nikkei bubble burst in 1991, but the keiretsu bailed themselves out yet
again, merging vast numbers of banks and writing off $1 trillion of
dead
loans. 
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