The Nature and the Contradictions of the Capitalist Crisis

Abstract

In this chapter, Nakatani and Gomes seek to reveal the privileges achieved by the US economy due to its position in imperialist relations, its reaction to the capitalist crisis and to the threat of the replacement of the dollar as the world currency. Based on empirical evidence on international economic relations, the authors demonstrate how the enforcement of the dollar reserve on most countries end up financing the continuous US external deficits, thereby guaranteeing the fractional reserves model and maintaining US command over the regulation of the speculative race around the world.