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We asked whose book dollar crisis.
There are two basic structural reasons for the persistent crisis of the dollar over more than a decade.
The first is the structural deficit in the payments and especially the trade balance of the United States. This reflects the fact that American manufacturing industry has competitive on a world scale.
This in itself results from the consistently lower increase in the productivity of than in the main countries of Western Europe and Japan. OVERPRODUCTION The second structural reason LIC overproduction in the United States — or. to put it anotner way, the under-utilisation of and CEL PHICH significantly higher in the US than it is in Western Europe and Japan.
This means Americal government forced to tolerate a higher rate scale, than its main competitors RECENT WEEKS have seen a sharp fall in the ERNEST MANDEL, economist and leader of the Fourth International "The Second Slump' has just been published, to explaininan interview what lies behind the the whole credit system.
balance of reserves.
RECESSION become less the dollar and money rate severe recession there -the United State severer than the recession 1974-5.
1974-5, if not more so. towards The latest nounced by workers is administration the that the of Towards the Marxist No banking system in the world could reabsorb even 10 per cent, let alone 50 per cent, of that huge mass oi dollar On the other hand, a serious attempt to stop the decline of would imply such restrictive measures on credit expansion in the US that it would precipitate a - much of And this would probably lead to an international recession, at least as severe as the one in spill over into measure Carter give the impression (we will see late what actually happens) that be heavy.
the Democratic means busiSILUREIC against inflation in the United States.
POLICE OPPRESSION ERNEST MANDEL: '1 wouldn't like to be in their shoes But that would unavoidably mean a recession next year And a recession in 1979 would political price for the Democratic Party in the presidential elections would be terrible.
ine social price would disc Is the American nine or ten million unemployed fight? SACEC SHIC indication that it will * H-BLOCK In Western Europe, for instance, even against social-democratic and Communist Party leaders, has become very strong after an initial period of disorientation. This is true now in Italy, in Spain, in Britain, and many other countries REACTION And in America, where the relations between the unions and the bourgeois Democratic Party arent so deep as Inost between the European trade novenCH the neo-reformist
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exchange rate of the dollar, only partially curbed by the 'anti-inflation package' announced by Carter.
PROJECT GIRLS