Banks have to lend money to profit-making • build up a house of cards which cvculuall collapses The dramatic decline of industrial production could not but have an eventual impact the banking system Kaufman puts it "banks were constrained by a thin capital base and substantial non-earning assets while the massive overhang of debt in the international market also restricted the capacity of the financial institutions to stimulate the economy.
The banks have been dealing in hope expecta tion, oil gambles and funinstead of rea income In two years alulic. short-term toreigi lending by banks rose from f5bn to f30bn!
Mexico The banks beat a path To une doors called 'advanced developing countries . But precise ly because the developthese countries was ultimately subordinate to that of the imperialist nations, there was a top limit to their ability Mexico spects for recovery? Bring ing banks down LO earth does not bring industry up off it knees. A major imperialist world boom would reauir countrie take on its shoulders the task of re-expanding world demand. At the end of the last war America took or this task as the completely dominant world power.
Rivals But the almighty dollar no longer rules The American learned this lesson painfulafter the 1974 slump Wherecession and found recession found that, because its European and Japanese rivals were now strong enough compete with it on a world scale they reaped the benefits of American led expansion. Only the forc ed devaluation of the allowed the Americans to compensate TOT UNUS CHICCU This time round, Reagan isn't playing: perialism has fallen victim a crisis of leadership and we face a new era of war, inter-imperialist rivalry, and allas. unemployment.
Welcome back to the thirties.
Trotskyist at recent revolutionary election rally in