in West Germany and Japan 11 it is to avoid an explosion unem oven! over the 10 million mark.
Hence the dilemma which the crisis of the dollar presents for the capitalist class both in America and internationally.
LONG TERM If the combination persistent trade deficit and noner tale or in a on 1 ad US leads the dollar vis-a-vis the European yen, this will not only have an on world trade and the exports of Western Europe and Japan, but could also in the long term threaten whole credit system.
Capitalist firms and governments outside the US now hold huge dollar somewhere in the range of 5400bn. It's a question simple arithmetic: decline continues without halt, a larger and larger part of that will be thrown onto the this will lead to the collapse of to a continuous main Currencies ane unt collapse of the balances of the CLASH Capitalism is in crisis. The leaders of the Labour Party and the trades unions OUT NOW! Order from PO Box 50. London NI.
HACKNEY THICHES cation AFRICA very BLOT SKAN "socialism" in the USSR and tastern Europe hase discredited socialism in the eses of the millions of workers throughout the world. We are opposed l them and will offer full support to all those fighting for socialist democraes reformist and Janou takers. the reaction could of be much So there again they have a real dilemma decline of the dollar would tion of the small amount of and coordina: tion that has been going on between the imperialist governThere would be an intensifiinter-imperialist competition a trade war, protectionism, and so on. CRISIS But a recession to stop inflation would mean a big political and social crisis in the United States.
So the dilemma is not merely between two evils on the economic field, but between two evils on the political and social field. They re really in a right spot — I wouldn't like 1o be in their shoes, I must say. NEXT WEEK: Ernest Mandel explains why the proposed Monetary cannot substitute for the dollar in the immediate future.