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Research Analyst: USA – Japan Government Policy – Priority – Open – Current | Must Reside in Northern California – Bay Area of San Francisco – Remote Based |
Public Policy Advisor on Business and Investment: USA – Japan – Priority – Open – Current | Must Reside in Northern California – Bay Area of San Francisco – Remote Based |
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12/18/2022 Research […]
Japan Policy Recommendations USA12/18/2022
Research Analyst: USA – Japan Trade and Business Policy
You know what is happening between Japan and USA and vice-versa, we want to read it from you
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Said El […]
European Central Bank Inflation Interest RateInitially published November 2, 2021 1:05 pm
Dossier: Eurozone, Euro, Inflation and European Central Bank
URL: https://www.globalleverage.wordpress.com/2021/11/02/ecb-eurozone-money-inflation/
Stagflation has been here for long time, what is here is deep recession that will be only reduced by the Federal spending to stimulate the growth and the consumption as well as demand for heavy equipment including the arm sales and race taking place around the world.
New forms of instability is needed around the world also to instill fear and increase the spending and purchase of weapons.
These purchases will be financed through loans and credits which will increase the demand for the Euro and the Dollar and give a stimulus to the growth in western economy and support the need to keep the interest rate at the level needed to be in accordance to the demand and the rate of convertibility of the dollar and the euro.
The increase of the external debt for countries that are hesitant in joining the sanctions against Russia and the distancing from China will be exposed to the reduction of their revenues coming from their exports, given that the primary goods and natural commodities will have their pricing relatively lower to the manufactured products and the weapons.
In time of scarcity of international capital and foreign direct investments, external debt will be the leverage to flat the playing field and recuperate the excess of dollars and euro floating in the international market given that the increase of interest rate can be a double sword hurting the economy through the reduction of investment and bank loans.
His name is Rodolph Hilferding
Stagflation has been here for long time, what is here is deep recession that will be only reduced by the Federal spending to stimulate the growth and the consumption as well as demand for heavy equipment including the arm sales and race taking place around the world.
Read more at this link:
Learning from Hilferding’s Finance Capital: Money, banking and crisis tendencies
Note by … Continue reading Learning from Hilferding’s Finance Capital: Money, banking and crisis tendencies
Africa Reports International Affairs World Economy
🆕📈#OECD #inflation rises to 🔟.5⃣% in September 2022, with inflation pressures broadening beyond food and energy in most countries.
Find out more ⤵️
https://fal.cn/3tm8R
Several months earlier, I had written articles on the soft descent into recession through the positions of Madame Christine Lagarde and the lack of financial clarity of the decisions she had continued to promote which gave the impression that she has not completely let go of her bad reactions and recommendations made to developing countries during her presence at the head of the International Monetary Fund, which she inherited as a gift following an accident in the history of the New York Waltzes by Strauss.
Said El Mansour Cherkaoui Oakland California – USA 15 Janvier 2021 Work and Research by Said El Mansour Cherkaoui on Latin America L’Accord de libre-échange nord-américain (ALÉNA) – … Continue reading Said El Mansour Cherkaoui and Latin America GLOBALLEVERAGE Amérique Latine: Secteur Informel, Commerce Électronique et Subcapitalisme Le secteur informel du Pérou, du Brésil, de la Colombie comme au…Continue Reading →
Plusieurs mois plus tôt, j’avais rédigé des articles sur la descente en douceur vers la récession a travers les prises de position de Madame Christine Lagarde et le manque de clarté financière des décisions qu’elle avait continué de promouvoir qui donnaient l’impression qu’elle ne s’est pas complètement dessaisi de ses mauvaises réactions et recommandations faites aux pays en voie de développement lors de sa présence a la tête du Fonds Monétaire International qu’elle a hérité comme un cadeau suite à un accident de la petite histoire des valses New Yorkaises de Strauss.
Les Pétrodollars et le quadruplement du prix du pétrole avait effectivement rempli les caisses des Etats exportateurs du pétrole alors que les pays importateurs de l’occident traversèrent une crise sans précédent qui fut aggravée par leur propre acharnement interne et externe de se concurrencer sur le marché international, une phase de transition dont les grands contours. … Lire la suite →
Mrs Christine Lagarde must take on a purely European mission and not imitate the Federal Reserve Bank of New York and follow the trajectory traced by the American authorities with regard to the current conflicting economic situation into which Europe in the aftermath of the War between Russia and Ukraine.
Destroy to Build, Anarchy in Human Nature Driven by Profit at All Costs and in All Directions with no alternative but the Race for Positioning in Pole Position and at the Vanguard of the Market to effectively direct, orient and dictate the very conditions proper of this Market which should be open given the ultra-liberal ideology which structures it internally as it conditions the pace of its external relations.
Several of these aspects I had discussed in the articles in this Dossier:
Madame Christine Lagarde doit s’investir d’une mission purement européenne et non d’imiter la Federal Reserve Bank of New York et suivre la trajectoire tracée par les autorités américaines en ce qui concerne l’actuel situation économique conflictuelle dans laquelle s’est engouffrée l’Europe a la suite de la Guerre entre la Russie et l’Ukraine.
Détruire pour Construire, l’Anarchie dans la Nature Humaine Conduite par le Profit à Tous les Prix et a tout Azimut sans alternative que la Course au Positionnement en Pole Position et en Avant Garde du Marché pour effectivement diriger, orienter et dicter les conditions mêmes propre de ce Marché qui devrait être ouvert vu l’idéologie ultralibérale qui le structure à l’intérieur comme elle conditionne l’allure de ses rapports extérieurs.
Plusieurs de ces aspects je les avais abordé dans les articles figurant dans ce Dossier:
Honorable Christine Lagarde – 22/7/2022 – European Central Bank
Today we took our latest monetary policy decisions:
🔵 We raised interest rates by 0.5 percentage points, a further step in normalising our monetary policy
🔵 More rate hikes will come. They will depend on how we see the economy and inflation developing
🔵 We also agreed on a new instrument to make sure that our policy smoothly reaches all of the euro area
For more on our decisions and what we looked at when taking them, swipe ⬅️
or visit our website https://lnkd.in/eq8hpd6Y
Yesterday we raised interest rates for the first time in 11 years. Here are three ways to find out more about our decisions:
1️⃣ Read our explainer, which sets out why we have raised rates https://lnkd.in/eQXvPUfK
2️⃣ Check out our visual statement, which explains our decisions in easy-to-understand language https://lnkd.in/enXtYSXE
3️⃣ Listen to #TheECBPodcast, where I explain the reasoning behind the hike https://t.co/Y1KpRDqueF
📸 by Sanziana Perju/ECB
Christine Lagarde Presidente European Central Bank Russia is not alone and there is China, India, South Africa and Brazil, the BRICS are building a wall of protection against any financial impediments against Russia. Too bad, Ms. Christine Lagarde, the inflation will find a warm welcoming nest in these sanctions where to procreate and expand not only in…Continue Reading → November 2, 2021
European Central Bank Débat sur la Monnaie: Economie Politique ou Politique Economique Said El Mansour Cherkaoui 25/9/19 Oakland USA Sciences Po, Grenoble Institut des Hautes Etudes de l’Amérique Latine, Paris Université de la Sorbonne, Paris III Publié par Said El Mansour Cherkaouiavril 28, 2020 Publié dans Cours en Ligne, Développement Economique, Programme de Formation Étiquettes :Cours en Ligne, Développement Economique, Programme…Continue Reading → February 12, 2022
Our prior and predictive work on the Inflation and Staginflation in Europe and the economies linked to the Supply Chain coming and going out of European Countries.
🆕📈 #OECD#inflation rises to 🔟.5⃣% in September 2022, with inflation pressures broadening beyond food and energy in most countries.
Find out more ⤵️
https://fal.cn/3tm8R
OECD – OCDE 432,251 followers – 6/9/2022 • 19 hours ago
#쮋 ay’s top news 🆕 The latest #OECD #EconomicOutlook has been released:
#Russia’s war against #Ukraine will substantially slow the global economic recovery & push up #inflation. Based on our projections, we expect OECD inflation to rise to nearly 9% this year. 💶📈
The world is set to pay a high price because of this #war. Read it here ⤵️ oe.cd/EOjun22
In Istanbul, Russia and Ukraine signed an agreement on Friday July 22, 2022 to allow export of grains through the ports of the Black Sea. Russia and Ukraine signed separate agreements with Turkey and the United Nations clearing the way for exporting millions of tons of desperately needed Ukrainian grain — as well as Russian grain and fertilizer — which can alleviate the food crisis that had threatened food security around the world.
The deal will enable Ukraine to export 22 million tons of grain and other agricultural products that have been stuck in Black Sea ports due to the war. According to Ukrainian President Volodymyr Zelenskiy, this Russia-Ukraine deal is for $10 billion worth of grain that will be available for sale with roughly 20 million tons of last year’s harvest that can now be exported.
In the same token, the United States pledged to provide more military support to Ukraine with 270 millions of additional financing for the purchase of weapons for Ukraine. In this total financial aid, Drones will represent $100 millions while the sending of jet fighters is still in consideration as an option for the long term.
Today we took our latest monetary policy decisions. What are they and what did we look at when taking them?
⚫️ The war in Ukraine is severely affecting the economy. In the near future, the economy will grow more slowly
⚫️ The war is creating new supply bottlenecks. These add to the difficulties for supply chains caused by recent pandemic measures in Asia. This is disrupting production in some sectors
⚫️ Inflation has increased significantly and will stay high over the coming months. Energy prices are by far the most important reason for this
⚫️ Our policy has to stay flexible and keep options open. Any change will depend on how the economy evolves and how we assess the outlook. We expect to conclude net asset purchases under our asset purchase programme in the third quarter of this year
Read more https://lnkd.in/erNK7jHs
Ms. Christine Lagarde with all respect to the employees of the European Central Bank, in France there are two adages that we used in our Travaux Pratiques at Sciences Po Grenoble Section Eco-Fi like you did in Sciences Po Aix
🌐 Quand le Beaujolais nouveau est là, tout va
🌐 Quand le Bâtiment va, tout va.
Adage populaire datant du 19e siècle pr Martin Nadaud, maçon devenu député puis préfet
In other words, Beaujolais means consumption and construction that are increase the income of the consumers, control the inflation, reduce the bottlenecks of the supply chain management
In other words, Bâtiment means infrastructure, budget, stimulation of the growth, creation of jobs and investment in areas of higher value added through workforce development and insertion
Other economic and productive areas can be developed through stimulation of the local demands along budgetary allocations from the regional authorities like from European Central Bank and other financial institutions to develop industries and productions that can be a substitution for importations $200 million was authorized over the weekend adding the $800 million, Biden administration has committed $1 billion in aid to Ukraine
The surreal lonely journey of the ECB under the leadership of Mrs. Lagarde towards inflationary delirium has already put the euro on the path of #liraization and is posing a substantial risk for European cohesion.
➡️ An unprecedented #failure of the ECB under the leadership of Mrs. Lagarde (reminder: once convicted on criminal charges of negligence for misuse of public funds) to act on it’s mandatory obligation is an embarrassing testimony to policy failure multiplied by institutional governance failure.
➡️ The #politicized reluctance to act in on primary mandate exposes the ordinary hard-working citizens to a hufe loss of purchasing power on their life-long retirement/insurance savings, income and social security benefits. The last CPI #inflation🚀 reading is 7.5% (higher locally and on PPI basis). 🗣 “The inflation data is speaking a clear language. The monetary policy may not miss the opportunity to counteract in timely maner” (Dr. J.Nagel, German CB on 01.04.2022)
➡️ “Living in a fantasy” 🦄 https://todayuknews.com/economy/living-in-a-fantasy-euros-founding-father-rebukes-ecb-over-inflation-response/
This article is another confirmation of my warnings and writings on what is going to be faced as spiral and trendy inflationary curbes not just by the European Central Bank but by the entire financial institutions and the respective countries and economies where they conduct their operations, investments and transactions and tranfers.
The war is expected to have a considerable impact on the global economy, and especially on the European economy, I told Phileleftheros. The overall impact will very much depend on how long the war lasts.
In the short term, it will likely lower euro area growth and push up inflation through:
➡️ higher energy and commodity prices
➡️ lower consumer confidence
➡️ disruptions to international trade
Our monetary policy decisions and the path of normalisation are entirely data-dependent. Now more than ever, we need optionality in our policy.
Read the full interview https://lnkd.in/dJ4vzJDC
European Central Bank Débat sur la Monnaie: Economie Politique ou Politique Economique Said El Mansour Cherkaoui 25/9/19 Oakland USA I Publié par Said El Mansour Cherkaoui avril 28, 2020 Publié dans Cours en Ligne, Développement Economique, Programme de Formation Étiquettes …Continuer de lire →
Christine Lagarde • President of the European Central Bank
Two years ago, I started my term as ECB President. It has been very different from what I expected!
In addition to the response to pandemic, there are some other areas of progress that I’m particularly proud of:
1️⃣ Our strategy review, completed in July, which provides a strong foundation for how we will conduct monetary policy in the years ahead.
2️⃣ Our climate change roadmap which sets out how we can take climate risks into account when making our policy decisions.
3️⃣ Our decision to launch the investigative phase of a digital euro project – it will prepare us for Europe’s digital future.
Christine Lagarde • President of the European Central Bank • 5 months ago
Two years ago, I started my term as ECB President. It has been very different from what I expected!
Christine Lagarde • President of the European Central Bank
Christine Lagarde on supply bottlenecks as one of the elements currently pushing up inflation.
European Central Bank 367,383 followers • 5 months ago
Ms. Christine Lagarde – European Central Bank
The European Monetary Policy needs to have an universal aim and not just to be limited to the members of the Eurozone.
Tightening credit standards when challenges exist is accentuating the pressure on productivity and growth. Non performing loans for their amortizations can be sold by auctions.
The ECB can play a central role in the integration of Africa given its raison d’etre that is the process of Europe Integration.
Actually with the surge of Fintech and drive toward digital monetization, the European Central Bank should be at the forefront of such technological moves that can support economic growth and job creation while increasing the profitability and keeping prices stable in Africa.
The instruments presently used by the European Central Bank need to increase the areas of their operations and implementations to expand the monetary policy outside of the Eurozone.
This is feasible through the mechanisms of foreign exchange operations, management of foreign currency reserves, and as aforementioned integrate the operations of the European Central Bank in payment systems such as the ones provided by Fintech allowing transnational operations and in the first place within Africa.
Now for your sweet-short explanation on the bottlenecks, you really make me laugh. It is something we listen to at the Sidewalk Radio not from your level.
So if we want to find solutions at the level of Radio Hood, pas de tire-bouchon for the bottlenecks you have just to do like the French Hussards, faire sauter le bouchon avec un coup de sabre et voila plus de bottlenecks.
Pas mal Madame Lagarde, En garde Fendez vous comme les 3 Masterquaires.
Concerning your declaration on the Supply Chain Management, there is a large difference between what the factories can produce and when they produce it which you did not elaborate at all on this operational productivity and supply.
Second, at the level of transport logistics it is not just the maritime cargo, there are other means and vectors of transportation.
For the maritime side, I will just give you an example of my writings on how the Port of Oakland is tackling such issue with tack, here my article on this:
Port of Oakland: Giant Cranes Raised Why?
Said El Mansour Cherkaoui March 12, 2021 … Continue reading
Attn.: Christine Lagarde
You graduate from Aix and me from Grenoble, same section: Economie et Finance, we had better teachers and profs at Sciences Po Grenoble than what you had at Sciences Po Aix because we were closer to Fondation Nationale Sciences Politiques Paris without be Haughty, I graduated before you when France could give and provide the best education by eminent minds.
European Central Bank President Christine Lagarde said earlier the week of 4/3/2022 that “three main factors are likely to take inflation higher” going forward.
“Energy prices are expected to stay higher for longer,” “pressure on food inflation is likely to increase,” and “global manufacturing bottlenecks are likely to persist in certain sectors.”
“Households are becoming more pessimistic and could cut back on spending,” Lagarde said in a speech in Cyprus on Wednesday March 30. 2022.
“Soaring energy costs sparked by the war in Ukraine have caused a surge in consumer prices within the eurozone, the EU’s statistics agency said on Friday 4/1/2022. Annual inflation in the eurozone reached 7.5% in March, up from 5.9% in February, Eurostat reported. It is the fifth straight month that inflation in the eurozone has set a record. Energy prices increased 44.7% in March, up from 32% in February, according to the Eurostat, as the European Union [European Commission] found itself embroiled in an oil-and-gas crunch caused by tensions with Russia following the invasion of Ukraine. The rise in inflation is increasing pressure on the European Central Bank to raise its key interest rate.
Here we go at last recognized the failure of her own policy:
European Central Bank President Christine Lagarde warned Wednesday 30 March, 2022 that a prolonged Ukraine conflict will mean the cost of living will continue to soar, hampering hopes of a post-COVID recovery.”
The Inflation is here and will endure with Russia Requesting the use of Rubles in all international purchases and China will follow this course and next is India. It is just a matter of time that BRICS Development Bank will advance its pawn toward becoming a global player in the international finance space with no borders like all these western based international financial institutions.
Currently the and what Ms. Presidente Christine Lagarde is pursuing “Monetarist Policy” added to the reasons of the Russian invasion of Ukraine and the subsequent sanctions are all playing in the field of the rise and consolidation of alternative and parallel financial institution coming from emerging economies and their followers. Whatever the importance of these reactions, there a disruptive impact and dispersion as well as diversion of financial transactions that are going to change the international financial system and all the related regional banks not only as regulator of the market but more importantly as a hub of all the financial transactions related to international trade and the value of goods exchanged.
Russia wants “unfriendly countries” to pay for Russian natural gas in Rubles. That’s a new directive from President Vladimir Putin … Continue Reading →
Russia’s invasion of its neighbor and the sanctions that followed have meant spiraling energy costs across the EU. Inflation in Germany is at its highest since reunification in 1990.
These are numbers that any Media outlet can verify by having their own estimates and calculations. In fact, on Friday April 1, 2022, Germany’s largest banking institution said rising inflation could be hard to stem because of an energy price shock sparked by sanctions that are exacerbating supply chain problems.
“The rhino in the room has been unleashed and may now prove difficult to stop,” Deutsche Bank Chief Investment Officer Christian Nolting said in a research note, adding that consumer price rises in the United States had breached 7%.
“Longer-term issues such as the shrinking workforce and the growing share of GDP generated by labor-intensive services are likely to remain and inflation is therefore unlikely to return to its pre-pandemic level in the years to come.”
“In the developed economies, already elevated inflation rates may now be driven even higher, given the conflict-induced oil and gas price shock. Sanctions, as well as businesses’ halting their operations in Russia, are exacerbating supply chain problems.” Nolting said economic growth in the United States would outstrip that of the eurozone in 2022 and 2023 because of the conflict in Ukraine and the European Union’s dependence on energy imports.
Multiple Sources: dw, jsi/nm (AFP, Reuters, dpa, AP)
Attn.: Christine Lagarde • President of the European Central Bank
For sure that oil surge in price has a direct impact on the inflation push up through:
➡️ higher energy and commodity prices
➡️ lower consumer confidence IN BIZZARE BAZZZAR
➡️ disruptions to international trade NOT NEW
Inflation came from the monetary policy pursued by the European Central Bank since 5 years ago and from factors that were not tackled during their rise, including the Pandemic
So where is the contingency strategy?
Risks have not completely disappeared, because progress in immunization remained slow in many parts of the world, pressures on global supply chains and rising prices for energy posed new challenges to the strength of the recovery and the outlook for inflation / THIS ASSESSMENT IS FROM 2021.
Since 1 November 2019 you are at the ECB So please do not blame the present time.
Christine Lagarde Presidente European Central Bank
Russia is not alone and there is China, India, South Africa and Brazil, the BRICS are building a wall of protection against any financial impediments against Russia.
Too bad, Ms. Christine Lagarde, the inflation will find a warm welcoming nest in these sanctions where to procreate and expand not only in Europe but to the trade partners of the European Countries. Energy prices are rising, threatening household budgets and corporate profits (except for the energy sector). In addition, the expected disruption of sanctions against Russia and Belarus will impact trade flows, which could further dampen the global economy, and Europe will be the first to suffer.
Russia was dependent on SWIFT, some 300 Russian banks and other financial institutions use the SWIFT system, and Russia is ranked second (behind the United States) in number of users of this platform. The reason for the high level of dependence stems from Russian energy exports which are denominated in US dollars. For this, the European Commission was reluctant to ban #Russia from SWIFT due to the dramatic impact it would have – on oil prices. Some fear this will create systemic global financial risk. For Russia, given its geographical location and the diversity of its international partners and the support it currently receives from China for its international transactions, the impact expected and even qualified as “Nuclear Financial Bomb” by Bruno Le Maire, the Minister of the Economy, will not have the effects desired or expected by the rest of the Western European Leaders.
Update: April 3, 2022 – 12:37 AM Pacific Time Originally published at LinkedIn on August 31, 2015: Said El Mansour
In fact, Russia has not been completely banned from SWIFT entirely – the targets of the bans are selected aiming specific banks, which appears to be intended to make it more difficult to avoid previous sanctions imposed on these banks. Energy exports are apparently excluded from these sanctions, although there is a risk at the level of each transaction of the energy exports that ca be more difficult to negotiate and settle, which can always cause the rate of inflation to implode, especially for energy, metal and grain prices.
Better to find other financial instruments to support the Growth and the Productivity of European Firms especially the Women, Mid Sized and Small companies that they still have to compete at the level of the international market with the oligopolies and the conglomerates that do not respect any national border, just remember what has predicted JJSS in his famous plaidoyer for the construction of Europe with allegiance to these giants transnational challenges.
Ms. Christine Lagarde with the financial policies you have been advocating in regards to the inflation and the position you took, that is “Wait and See” is an evidence that you have not completely turned the page of the IMF and the World Bank influences in designing strategies of recovery and stimulation of growth that they included in their conditionalities toward developing countries and now you are applying for European countries.
Said El Mansour Cherkaoui, Ph.D. – Update 3/5/2022
Updated 12/1/2021
The European Monetary Policy needs to have an universal aim and not just to be limited to the members of the Eurozone.
Tightening credit standards when challenges exist is accentuating the pressure on productivity and growth. Non performing loans for their amortizations can be sold by auctions.
The ECB can play a central role in the integration of Africa given its raison d’etre that is the process of Europe Integration.
Actually with the surge of Fintech and drive toward digital monetization, the European Central Bank should be at the forefront of such technological moves that can support economic growth and job creation while increasing the profitability and keeping prices stable in Africa.
The instruments presently used by the European Central Bank need to increase the areas of their operations and implementations to expand the monetary policy outside of the Eurozone. This is feasible through the mechanisms of foreign exchange operations, management of foreign currency reserves, and as aforementioned integrate the operations of the European Central Bank in payment systems such as the ones provided by Fintech allowing transnational operations and in the first place within Africa.
Finally, a voice is expressed on the reasons for the passage and the continual retrograde of the formerly colonized countries from the level of developing countries to the level of underdeveloped countries and currently sinking into the level of subcapitalist countries.
This subcapitalization was accentuated by the globalization of direct and indirect foreign investments and their impact on social structuring and the consolidation of local elites which facilitate the internalization of the demands of international financiers. Poverty has consolidated and spread like an economic virus in subcapitalist societies weakening their participation in world growth thus accentuating recessions and even current inflation.
The manipulation of the prices of raw materials as well as the prices of consumer products is the result of this complicity between the supporters of the Global Supply Chain and these governing elites, including national banks and transnational financial institutions. The United States has launched an investigation into this matter.
Likewise, the Eurozone is witnessing an inflation rate of 4.9% from one year to the next, which has never been the case since the launch of the euro in 1999.
Finally a voice is talking about the reasons how formerly colonized countries emigrated from the level of developing countries to the level of underdeveloped countries to reach actually the statute and the privilege of currently sinking into the deep subcapitalism.
Euro zone inflation figures for November are historic. At 4.9% year-on-year, European inflation has never reached such levels since the launch of the euro in 1999. Rising commodity prices (energy prices rose 27% on year in November), combined with strong economic growth and the emergence of bottlenecks in industry continue to explain this an extraordinary return of inflation that no one believed until a few months ago. Recall that the dominant theme before the Covid crisis in early 2020 was the risk of deflation which had threatened the United States and Europe, like Japan, for decades.
With such figures the dilemma of the ECB and all the central banks becomes more and more untenable. How to stop extreme monetary policies of zero interest rates along with liquidity injections in order to fight against this inflationary peril can generate high risk of recession and threatened purchasing power and consumption.
Neither the ECB nor any other central bank has yet made a decision, and is unlikely to do so quickly given the uncertainties over the Omicron variant and its potential consequences for growth and financial markets.
The official objective of the ECB is still … 2%, while another major risk will then appear: the impact of massive rate hikes on debt service. If interest rates are skyrocketing, situation will get out of control and will require a budgetary austerity.
Updated 27/11/2021
A couple of other important points covered:
➡️ If we at the European Central Bank were to tighten monetary policy now, we would expect to see the impact in 18 months’ time. But our forecasts show inflation falling back by then.
We would cause unemployment and not have countered the current high inflation. I would find that wrong.
➡️ Interest rates can rise when we see inflation reaching our 2% target over the medium term, durably and sustainably – meaning not just for a short period of time.
Madame Lagarde, inflation rates are increasing around the world. Inflation in the United States is 6.2%, while in Germany a rate of close to 6% is expected for November. Is inflation spiralling out of control?
At the European Central Bank we are of course monitoring that very closely. And not only because our primary objective is maintaining price stability and inflation is a crucial indicator of that. But also because we know that inflation affects people. Those who are less privileged and less well off are the ones who suffer the most from inflation. That’s why we need to keep looking at it very carefully.
Do you feel any effects of rising inflation in your own daily life?
Of course, the rise in energy prices is the most noticeable. After all, energy price inflation now accounts for around half of the high inflation rates. You can’t help noticing the price increase when you fill up your tank at a petrol station or buy heating oil for the winter. As a French person, I keep a close eye on the prices for good bread at the bakery. That stands out at the moment and is making many people worried – but we expect that this rise in inflation will not last. It will subside next year. We expect that the inflation rates will start to fall from as early as January.
What makes you so sure? Won’t there be second-round effects, if the trade unions demand higher wages to compensate for the higher prices?
Judging by what we know from surveys of employers and trade unions so far, no strong inflationary pressure is to be expected from that front for the time being. The negotiated wage settlements have been very moderate so far. For next year, somewhat higher wage demands are partly to be expected. But based on what we are seeing, the settlements should not be on a scale that might trigger a wage-price spiral.
Do you not think that employees could become nervous and nonetheless demand compensation for inflation if inflation rates now hit a level that has not been seen for many years?
That does not seem to be the case at the moment. And if we look at inflation expectations, both those which can be derived from the financial markets and those resulting from surveys, then most people do not expect higher inflation in the longer term. Inflation expectations have risen, but they are below our inflation target of 2%. We don’t see any de-anchoring of inflation expectations.
Do you personally never have any doubts that inflation might persist for longer than your experts are currently predicting?
I ask myself this question again and again. To answer it you have to consider what is driving the current high rates of inflation. I would distinguish three groups of driving factors. The first are statistical base effects which are related to the pandemic, such as the VAT reduction in Germany last year and its reversal, which are now sharply pushing up the price increase relative to the previous year. Similar passing pandemic effects can be seen in respect of package holidays, for example. These factors will automatically disappear next year, as they will fall out of the year-on-year comparison. Supply bottlenecks are a second group of drivers. Demand surged after the end of the first lockdown whereas supply is still constrained. These bottlenecks in, say, computer chips, containers and road haulage capacity are obviously persisting for longer than we had initially thought. But the situation will gradually improve next year in that respect too. The third group is energy prices. We expect that energy price developments will at least stabilise next year.
But surely nobody can know for certain how oil prices, say, will develop next year?
We at least see good reasons why the strong price increase in energy will not last into the second half of 2022. There is in any case no expectation in the oil futures markets that the price increase will continue. But we are seeking to evaluate and consider as many sources of information on this topic as we can.
Christine Lagarde • FollowingPresident of the European Central Bank 2w • 2 weeks ago
At today’s Eurogroup meeting we discussed the positive economic outlook in the euro area, with monetary and fiscal policies supporting a strong recovery. We are confident that the current higher inflation is transitory. We also exchanged views on the goals of a digital euro.
In a world subdivided with respect to natural resources and by the degree of participation in the aggregate supply and demand, the signs of the crisis represent only indicators for the international financial institutions whose firm belief is that the market will eventually be capable of correcting its excesses, even going so far as to adopt the “new paradigm” thesis.
With this self-assurance based on the belief that growth now passes through increasingly long economic cycles and swift oscillations with higher development rates, with low inflation and increased productivity, thanks to efficiency and innovation brought about by new technologies.
Rostow would be delighted and Keynes would be impressed while Friedman would be relieved, all without any consideration for the development of the human factor.
For these decision makers, there are collateral damages in the form of frequent financial misadventures, with all the human and political tragedies that they entail, they remain only inevitable misadventures on the way to the economic El Dorado.
The interest rate serves as a lever such as the “Invisible Hand” which indirectly regulates any market integrated in the financial and commercial world. It is widely accepted that financial instability is deeply rooted in the financial crisis affecting the functioning of markets which imposes recommendations on emerging and developing economies with the sole aim of making them beneficiaries of loans and financial transfers.
These indirect capital movements serve to alleviate the impact of expenditures and deficits resulting from investments undertaken by emerging and developing countries in the establishment of infrastructure and transformative operations in order to be able to compete with their peer countries for the attractivity of foreign direct investments.
The broad incentives and financial facilities offered to foreign investors coupled with the infrastructure spending added to the low return received in exchange for heavy investments and long term depreciation all reduce the income of their treasuries. States of developing economies are thus reduced to reach the ceiling on external debt.
However, some time ago, even the International Monetary Fund and the World Bank recognized that a large number of their interventions did not benefit emerging and developing countries which are going through a very severe crisis, and that the medicine administered in the form of Hiring of consultants had disastrous second-effects and the prescriptions presented in the form of recommendations proved to be poisonous and even final as overdoses.
Dans un monde subdivisé par rapport aux ressources naturelles et par le degré de participation dans l’offre et la demande globale, les signes de la crise représentent seulement des indicateurs pour les institutions financières internationales dont la croyance ferme et qu’à terme le marché serait capable de corriger ses excès, allant même jusqu’à adopter la thèse du « nouveau paradigme ».
Avec cette auto-assurance est basée sur la croyance que la croissance passe désormais par des cycles économiques de plus en plus longs et des taux de développement de plus en plus élevés, avec une faible inflation et une productivité accrue, grâce à l’efficacité et l’innovation apportées par les nouvelles technologies. Rostow en serait ravi et Keynes serait impressionné alors que Friedman serait soulagée, le tout sans aucune considération pour le développement du facteur humain.
Pour ces décideurs, il existe des collatéral damages sous forme de mésaventures financières fréquentes, avec toutes les tragédies humaines et politiques qu’elles entraînent, elles n’en demeurent que des mésaventures inévitables sur la voie de l’eldorado économique.
Le taux d’intérêt sert comme levier telle que la « Main Invisible » qui régule indirectement n’importe quel marché intégré dans le monde financier et marchand. Il est largement admis que l’instabilité financière est profondément enracinée dans la crise financière affectant le fonctionnement des marchés qui impose des recommandations aux économies émergentes et en développement dans le seul but d’en faire des bénéficiaires de prêts et de transferts financiers. Ces mouvements de capitaux indirects servent à alléger l’impact des dépenses et des déficits résultant des investissements entrepris par les pays émergents et en voie de développement dans la mise en place d’une infrastructure et des opérations transformatrices afin de pouvoir rivaliser / concurrencer avec leurs pairs pour l’attraction d’investissements directs étrangers.
Les larges incitations et facilités financières offertes aux investisseurs étrangers ajoutées aux dépenses d’infrastructure ajoutées au faible rendement reçu en échange d’investissements lourds et à long terme d’amortissement réduisent les revenus des trésors. Les États des économies en développement sont ainsi réduit au plafonnement de l’endettement extérieur.
Pourtant, il y a quelque temps, même le Fonds Monétaire International et la Banque Mondiale ont reconnu qu’un grand nombre de leurs interventions non point profité aux pays émergents et en développement qui traversent une crise très sévère, et que la médecine administrée sous forme d’envoi de consultants a eu des second-effets désastreux et les prescriptions présentées sous forme de recommandations se sont prouvées empoisonnantes et même finales comme des overdoses.
Some of my publications related to the topic addressed by Presidente Christine Lagarde can be used as complement for my aforementioned comment while presenting the role of the World Bank and the International Monetary Fund in shaping the evolution of the World Economy with emphasis on the economies of the Southern countries. (The articles are written en Français et/and in English).
Western Diplomacy Blend of Waltz and Petrushka: USA – Europe Union – Russia Loves and jealousies of two figurines: US and EU along with one puppet: Ukraine Bringing Freedom to Ukraine, like liberating Women in Afghanistan and giving the best gift in life to Iraq and Democracy to Libya and Syria, Who is Next Reserve your seat for the next Arab Spring Trip They close … Continue reading Western Diplomacy Blend of Waltz and Petrushka: USA – Europe Union – Russia –
Europe, Pomme de Discorde et Fin de l’Idylle de l’Eden Occidental ★ GLOBAL LEVERAGE ★ Said El Mansour Cherkaoui, Ph.D. 5/10/2022 President Emmanuel Macron “a averti que si l’Europe aidait maintenant l’Ukraine, il arriverait un moment où Moscou et Kiev demanderaient la paix et à ce moment-là, aucune des parties ne devrait être humiliée ou exclue comme cela s’est produit pour l’Allemagne … Continue reading Europe, Apple of Discord and End of the Idyll of Western Eden –
Said El Mansour Cherkaoui, Ph.D. 05/05/2022 BRICS (Brésil – Russie – Inde – Chine – Afrique du Sud) Triangle Russie – Inde – Chine La formation du groupe BRICS en 2010 a souligné que “le monde subit des changements importants et rapides qui mettent en évidence la nécessité de transformations correspondantes de la gouvernance mondiale dans tous les domaines pertinents”. Ses membres ont également fait valoir que leur contrôle … Continue reading Brexit ou pas Brexit, le Royaume-Uni et l’Union européenne en Inde pour Briser les liens des BRICS avec la Russie –
Said El Mansour Cherkaoui, Ph.D. 5/5/2022 BRICS (Brazil – Russia – India – China – South Africa) Russia – India – China triangle In particular, the formation of the BRICS group in 2010 emphasized that “the world is undergoing significant and rapid changes that highlight the need for corresponding transformations of global governance in all relevant areas.” Its members have also argued that … Continue readingBrexit or not Brexit, United Kingdom and European Union in India to Break Ties of the BRICS to Russia –
Par Dr. Said El Mansour Cherkaoui Les Prix de l’essence a gauche Californie du Sud, dans les mains du Président Biden, Californie du Nord, c’est une moyenne pour un Gallon l’équivalent de 3.785411784 L. Oakland – Californie – Houston – Texas – Paris – France – El Jadida – Maroc INFLATION PAR LA POMPE PRIX DE L’ESSENCE LE GALLON AMÉRICAIN A OAKLAND, CALIFORNIE et HOUSTON … Continue reading Far-Est Division et Éclatement de l’Europe –
European Commission As the brutality of the Russian invasion increased, the European Union approved the fifth package of sanctions against the Kremlin’s war machine. These measures are broader and harsher and dig even deeper into the Russian economy. They follow atrocities committed by Russian forces in Bucha and elsewhere in Ukraine under Russian occupation. They target six main issues: import of coal from Russia transactions with 4 … Continue reading Russia★China & Europe★USA –
Said El Mansour Cherkaoui English Version: Nationalism Versus Liberalism: War and Finance in Europe Quelle est votre réponse à ce sujet ? Council on Foreign Relations Un groupe de réflexion La Crème de la Crème mais republiant des articles avec sensation cette réalité, avec mon respect pour tous les autres écrivains éminents. Sebastian Mallaby soutient que, même si la Russie et la Chine sont mécontentes … Continue reading Nationalisme Contre Libéralisme en Europe: Guerre et Finance –
Russian forces are intensifying their attacks on Kyiv and western Ukraine as it prepares to shift focus to the eastern Donbas region. The New York Times says Russia’s strategy seems to involve “degrading” Ukraine’s capabilities across the country before renewing its offensive to the east. Meanwhile, Russia has warned the U.S. and NATO that they risk “unpredictable consequences” by continuing to arm Ukraine with “sensitive” … Continue reading Nationalism Versus Liberalism: War and Finance in Europe –
Honorable Christine Lagarde 6/9/2022 Our prior and predictive work on the Inflation and Staginflation in Europe and the economies linked to the Supply Chain coming and going out of European Countries, for more details read more in the following link: European Central Bank: Eurozone, Money and Inflation AFRICANA ENTREPRISE ★ GLBAL LEVERAGE ★ MoroccoTech European Commission European Central Bank OECD – OCDE … Continue reading European Central Bank: Eurozone, Money and Inflation –
US seizes Russian oligarch’s yacht The U.S. has taken possession of a superyacht said to be owned by a Russian billionaire and has filed a warrant to seize two private jets owned by another oligarch.View news story 3,855 2,306 comments 647 shares Elmahdi Oummih(He/Him) 1st degree connection1stManaging Director at Medical Device Group 3w Nothing Biden Administration/Congress has said about the Conflict in Ukraine has been … Continue reading Sanctions Against Russia Oligarch – Billionaires: People Reactions –
EU countries announced last night that they had agreed to a substantial ban on the import of Russian oil. After opposition voiced by Hungary, imports will only be halted on oil that arrives by sea, but the sanctions still account for two-thirds of all Russian oil supplied to the EU. Russia had been delivering 27 percent of the EU’s imported oil and was receiving roughly … Continue reading Russian Oil Embargo or in Barco ! –
ACTUALITÉS – CHRONOLOGIE le 04 janvier 2000 à 00h 00 1991 – 8 décembre : les présidents des trois républiques soviétiques de Russie (Boris Eltsine), d’Ukraine et du Bélarus «constatent» la fin de l’Urss, à Belouvejskaïa Pouchtcha, près de Minsk (Belarus), et décident de créer une Communauté d’États indépendants, la CEI. – 21 décembre : création à Alma Ata (Kazakhstan) par onze ex-républiques soviétiques (sauf la Géorgie) … Continue reading Les grandes dates de la politique extérieure russe depuis la chute de l’URSS –
Carnegie Endowment for International Peace Original Title: Crying Genocide: Use and Abuse of Political Rhetoric in Russia and Ukraine MATTHEW KUPFER, THOMAS DE WAAL JULY 28, 2014 Summary: The word “genocide” has long been abused in Eastern Europe. In the current Ukraine crisis, such fiery rhetoric is fueling a dangerous conflict and hindering reconciliation. Rinat Akhmetov, a powerful oligarch who had been wavering in the conflict … Continue reading Look at the Roots of Genocide: Russia – Ukraine War of Rhetoric –
Débat sur la Monnaie: Economie Politique ou Politique Economique
Said El Mansour Cherkaoui 25/9/19 Oakland USA Sciences Po, Grenoble Institut des Hautes Etudes de l’Amérique Latine, Paris Université de la Sorbonne, Paris III Théorie Quantitative de la Monnaie VIEW ON THE NEW ECONOMY Vue sur la Nouvelle Economie Economie Politique ou Politique Economique MISE À JOUR LE 19 FÉVRIER 2020 Des origines lointaines Dès la … Lire la suite
Said El Mansour Cherkaoui – Sciences Po, Grenoble
Institut des Hautes Etudes de l’Amérique Latine, Paris, Université de la Sorbonne, Paris III
Said El Mansour Cherkaoui – USA 15 Janvier 2021 Sciences Po, Grenoble Institut des Hautes Etudes de l’Amérique Latine, Paris Université de la Sorbonne, Paris III During the 1980s, the differences between non-Western countries and Third World countries became evident with regard to economic changes and progress at the level of the participation in the new industrial division of labor and the implementation of industrial strategy. East … Continue reading
Chapitre 27 – De la monnaie et des banques On a déjà tant écrit sur la monnaie, que, dans le nombre des personnes qui s’occupent de cette matière, il n’y a guère que les gens à préjugés qui puissent en méconnaître les vrais principes. Je me bornerai donc à un aperçu rapide de quelques unes … Lire la suite
Said El Mansour Cherkaoui – California – 15 Janvier 2021 Changing World Economy During the 1980s, the differences between non-Western countries and Third World countries became evident with regard to economic changes and progress at the level of the participation in the new industrial division of labor … Continue to read. إذا ريتا منكرن فغيره بي يديك فين لم تستطيع فغيره بي ليسانك فين لم … Continue reading
Coronavirus + Crise × Intervention de l’Etat => Circulation de Monnaie + Inflation = Chômage
COVID-19 – Coronavirus et le Besoin d’une Nouvelle Économie du Développement comme Remède National 5 – 4 = 2020 – Le 5 Mars 2020 Un Modèle Libéral Essoufflé par le Mal-Développement Durable et Ébranlé par l’absence de … Lire la suite
Written By William Quinn When we started researching historical bubbles, we were surprised by how much the different episodes had in common. They always seemed to occur when there was abundant money or credit, they always seemed to occur in assets that had recently become much easier to buy and sell, and they always involved Continue reading
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Le futur de la cryptomonnaie #Cryptomoney #cryptomonnaie
For the moment it is a pure scam like the casinos. A currency which floats without direction, nor productive and growing added value and which is neither based on an monetary reserve.
This reserve should be a surplus of which several interbank transactions verify and sanction, control and increase its transfer base, convertibility [example of Central Banks and LIBOR] and achievements as a form of deposit, exchange, conversion , settlement, loan and support for productions integrated into the international regional, national and interbank exchange circuit.
Add to that, Cryptomania is not used for payment of debts, financial obligations such as taxes.
If all these procedures do not exist in the fiduciary identity and the financial value of Cryptomania, it cannot therefore claim an institutional financial legitimacy and legal monetary .
It is neither the number of participants, nor the level of transactions, nor the amount achieved, nor the slogans and propagandist speeches that will give legitimacy to the Cryptocracy and Cryptorobotech.
Waiting for Godot – Sidna Kdar for better
Posted December 5, 2021 – Said El Mansour Cherkaoui Sciences Po, GrenobleInstitut de Recherche Economique et de Planification, GrenobleInstitut des Hautes Etudes de l’Amérique Latine, ParisUniversité de la Sorbonne, Paris III Bitcoin plunges overnight – CNN 04/12/2021 – Bitcoin prices plunged overnight to a low of about $43,000. The famous infamous Dame which I baptized as…Continue Reading → December 5, 2021
Posted December 5, 2021 – Said El Mansour Cherkaoui Sciences Po, GrenobleInstitut de Recherche Economique et de Planification, GrenobleInstitut des Hautes Etudes de l’Amérique Latine, ParisUniversité de la Sorbonne, Paris III Bitcoin plunges overnight – CNN 04/12/2021 – Bitcoin prices plunged overnight to a low of about $43,000. Echange Initial sur la Cryptomonnaie 📈 Si 📈…Continue Reading → December 5, 2021
European Central Bank Débat sur la Monnaie: Economie Politique ou Politique Economique Said El Mansour Cherkaoui 25/9/19 Oakland USA Sciences Po, Grenoble Institut des Hautes Etudes de l’Amérique Latine, Paris Université de la Sorbonne, Paris III Publié par Said El Mansour Cherkaouiavril 28, 2020 Publié dans Cours en Ligne, Développement Economique, Programme de Formation Étiquettes :Cours en Ligne, Développement Economique, Programme…Continue Reading → February 12, 2022
Christine Lagarde Presidente European Central Bank Russia is not alone and there is China, India, South Africa and Brazil, the BRICS are building a wall of protection against any financial impediments against Russia. Too bad, Ms. Christine Lagarde, the inflation will find a warm welcoming nest in these sanctions where to procreate and expand not only in…Continue Reading → November 2, 2021
Encore une […]
Maroc Maroc Numérique Morocco Morocco TechEncore une nouvelle fois, nos responsables du Tourisme Marocain se font une Gourde Catalane pleine de lumière et de vide culturel, ils prennent le bus pour aller nulle part culturellement parlant puisque le tout est rédigé en Anglais alors que le trajet du bus se fait en Barcelone:
VRAIMENT CES RESPONSABLES DU TOURISME MAROCAIN – ILS SONT DU CULOT – BRAVO, ILS NE RECULENT DEVANT RIEN POUR PRENDRE DES RACCOURCIS MÊME EN PRENANT LE BUS A BARCELONE
KINGDOM OF LIGHT IN THE MIDDLE OF THE HEAT OF THE NIGHT
Morocco is not Kingdom of Light
Morocco is the Bright Kingdom of Colors
Mauvais message qui peut être retournée facilement par les détracteurs
La première chose 101 Marketing Crash Course, on apprend a ne pas des slogans qui peuvent avoir plusieurs sens et de faire détourner de leur objectif.
Ce message est Mauvais comme tout et ne plus il y mettes Kingdom, ce qui est une aberration et un manque de respect pour le Kingdom Réel et en plus si cet autobus est a Barcelone, la localisation de ce message est aussi inadéquate.
Les espagnols ne vont pas se sentir bien d’être pris des anglophones et en plus ce message pour respecter la culture locale, devrait être avec un autre message et en langue catalane même pas en espagnol.
VRAIMENT CES RESPONSABLES DU TOURISME MAROCAIN – ILS SONT DU CULOT – BRAVO, ILS NE RECULENT DEVANT RIEN POUR PRENDRE DES RACCOURCIS
ENGLISH & FRANCAIS C’EST KIF – KIF / HALOUF KARMOUSSE
Ces decideurs de visitmorocco / Office National Marocain du Tourisme, ils se foutent le doigt dans l’œil partout ou ils vont et traduisent les slogans selon leur propre vision de l’ignorance linguistique, ils ou elles sont complètement en marge de la rationalité a tel point que même leur “Website – ” qui pour eux dans leur clip vidéo comme introduction imagée tant, c’est Kif – Kif / Halouf – Karmousse, Une seule version en Langue Anglaise bouche le trou de toutes les autres langues citées.
Ces responsables du Tourisme ne se dérangent pas et ne sont pas dérangés que les langues suivantes sont vraiment différentes et qu’elles ne sont pas du même bord culturel et en plus cela c’est pour présenter le Maroc au reste du monde virtuel, qu’importe doivent-ils penser, Keep Going and Get it Done, Who Cares, After us the Flood, Après Nous le Déluge
Alors, ils continuent sur leur lancée et imposent le clip central de leur website en Anglais Passe-Partout, take or leave it, they do not spend a blink and care a second!
Dans le même sens, cet article est la preuve flagrante que certains managers œuvrant pour la promotion du Maroc, comme au sein de morocconow Campagne et maintenant visitmorocco / Office National Marocain du Tourisme leurs approches au niveau international tentent de présenter ses potentiels, compétences et opportunités existantes dans le but d’attirer des entreprises étrangères, des investisseurs étrangers et des institutions académiques ou sociales étrangères. Le Maroc dépense des millions pour construire une image d’excellence en matière d’attractivité et d’attractivité en espérant que ces capitaux étrangers contribueront à réduire le chômage, à augmenter la création d’emplois, à transférer le savoir-faire, à élever le niveau de vie des citoyens.
Imaginez alors que tous ses efforts louables ne prennent pas la direction attendue ni ne soient portés par des responsables compétents et des professionnels aguerris et expérimentés dans les domaines correspondants du Marketing, de la définition de marque et de la valorisation stratégique du positionnement du Maroc sur la scène internationale.
Les attentes de l’Etat marocain sont légitimes étant donné que les dépenses qui sont faites au niveau international sont lourdes en somme et en impact sur les recettes perçues par le Maroc. Les paiements payés par le Maroc pour les services des sociétés étrangères des Cabinets de Relations Publiques, de Marketing International et de Conseil sont effectués avec des tarifs appliqués sur place et en plus sont effectués dans la monnaie nationale du pays où ces sociétés offrent leurs services. Un impact direct sur la balance des paiements et sur le taux de convertibilité du dirham peut résulter de ces transferts de paiements.
Au vu de tous ces enjeux, les impératifs et les défis auxquels le Maroc est confronté au niveau mondial sont d’abord les multiples répercussions au niveau immatériel et matériel. Construire les fondations du développement économique et de la croissance au sens libéral cherche la participation étrangère comme conduit vers l’intégration au marché mondial et au réseau d’institutions financières étrangères. Dans un tel cadre, il est tout à fait normal d’avoir des décideurs de haut niveau pour une telle communication internationale et des relations publiques sur le Maroc. Ils doivent être à la hauteur et connaître le terrain international qui leur permettra de naviguer sur le navire Made in Morocco et Morocco Nowen tant que leaders innovants et efficaces à bord, connaissant efficacement la direction et l’objectif – destination de toutes ces manœuvres pour faire arriver ce navire marocain en toute sécurité et en faire une preuve des prouesses et de la compétence et des potentialités qui peuvent défier ses concurrents également en tant qu’organisations de toutes sortes potentiellement intéressées par le Maroc en tant que partenaire commercial, en tant que lieu de production ou d’investissement ou en tant que destination à visiter et à connaître sur les plans culturel et social.
Cette campagne menée à Dubai Morocco Expo 2020 Dubai et le film promouvant le lancement de Morocco Now à la fois à Dubai et à New York doivent transmettre les considérations susmentionnées, malheureusement, ils ne l’ont pas fait et je ne suis pas le seul à le souligner ou à en prendre note il.
Le groupe présentant cette campagne de promotion sur le Maroc à Dubaï et au Maroc lorsqu’on les interroge sur l’impact de ces deux promotions spéciales et surtout comment le choix de New York a été fait, leurs réponses et réactions sont conduites à travers un bombardement par leurs amis des médias des sites par de judicieuses tentatives de camouflage dans une feuille de prestige et de fierté nationale en mettant en lumière et en questionnant le sens du patriotisme et du nationalisme à ceux qui osent leur poser de telles questions. ★
★ Ces amis ont par hasard désigné Times Square sous le nom de Time Square, montrant leurs aptitudes à se copier et entre eux et démontrant leur méconnaissance flagrante du terrain et de New York comme Marketplace .
Cet article revient sur ces actions et révèle l’ineptie et l’incompétence de certains de nos managers, dits Professionnels qui s’occupent de la promotion touristique du Maroc au niveau international et qui démontrent amplement leurs incompétences frôlant l’ignorance en ce qui concerne les subtilités culturelles du pays dans lequel ils conduisent leur campagne promotionnelle et leur connaissance abasourdissante de leur propre pays
Dans le temps, ils ont poussé le ridicule au Maroc allant jusqu’à mettre et coller une photo des remparts d’Essaouira ou de Rabat et les présenter comme celles de la Ville fondée par les Portugais: Fortaleza Mazagao – Mazagan – El Jadida.
Un autre fiasco de ces soit-disant professionnels du tourisme:
Bravo Jamal Younes Kilito
L’UNESCO a reconnu la valeur universelle exceptionnelle de Mazagao, la ville portugaise de Mazagan (El-Jadida) une colonie fortifiée sur la côte atlantique construite au début du XVIe siècle.
Said El Mansour Cherkaoui, Ph.D. ★ « Le temps de la Siba, le temps où les Cheikhs étalaient le burnous sur la djellaba et faisaient parler le baroud » Fellah de Doukkala “The time of the Siba, the time when the Chiefs spread the burnous on the jellaba and made the baroud speak » Fellah de…Lire la Suite →
Responsables du Tourisme Marocain qui ne connaissent pas leur propre pays
Comme d’habitude la première cité européenne construite sur les côtes de l’Afrique ne figure pas sur les pans du Pavillon Maroc
La cité avec l’un des plus anciens cimetière britannique et ou Orson Welles filma une partie de son film Othello
Said El Mansour Cherkaoui – August 27, 2021 Dans la culture populaire Abd el-Ouahed ben Messaoud Le tableau d’Abd el-Ouahed ben Messaoud est détenu par le Shakespeare Institute à Stratford-upon-Avon.[2] Il a été suggéré qu’Abd el-Ouahed ben Messaoud a inspiré le personnage de Héros maure de William Shakespeare Othello , mais d’autres ont soutenu qu’il n’y avait aucun…Lire la Suite →
Thank you
Do not even mention it – for what for missing the point !!!!!
Merci
pour rien et il n’y a pas de quoi et c’est le cas de le dire.
Ou bien comme dans ma ville natale qui est toujours absente aussi dans le découpage administratif et régional de la Politique de Régionalisation Marocaine et dans cette cite de fierté des Moujahidines marocains ou on dit Hey Merci Ma Ari Ma Takssi, en effet on a dénudé ma propre ville de sa propre raison d’être, on l’a pollué comme une décharge chimique rouillée, on passe outre sa propre histoire dans toutes les manifestations culturelles historiques marocaines malgré son prestigieux sacrifice pour sa propre libération par ses propres hommes et femmes.
Ces fonctionnaires du tourisme sont en fait des pures touristes dans leurs propres cultures, qui, une fois démasqués / et tentent de remettre en cause notre nationalisme et notre patriotisme, se murent dans leur incapacité à comprendre nos interrogations et vu leurs faiblesses ils optent pour les manœuvres ultimes qui confirment leur sautillement, éludant l’essentiel de leur propre responsabilités professionnelles en sortant par la porte par derrière, l’issue de secours. Ils ne pouvaient pas faire face à la réalité de l’incohérence et des actions incompétentes.
Je vous laisse suivre le cours et la trajectoire d’un tel comportement d’une Directrice de la communication et des relations publiques Mme Sahar Tlemsani Maghraoui qui a brusquement résilié son compte sur LinkedIn alors qu’elle ou l’un de ses supérieurs s’est rendu compte que leurs pratiques présentaient des failles et des lacunes et qu’elles ne pouvait pas surmonter par de fausses explications alors qu’ils et elle faisaient face aux gens du commun au Maroc.
Leur manipulation s’est heurtée au mur de compétence de mes questions et de mes interrogations qui n’ont qu’un seul but, c’est de rendre au Marocain ce qui appartient au Maroc.
Cet article est la preuve flagrante que certains responsables de la renommée que le Maroc devrait acquérir à l’étranger et au niveau international et cela en tant que pays plein de compétences et de potentiel tant pour son propre développement que pour ces compagnies, ces investisseurs et ces institutions académiques ou sociales que le Maroc dépense des millions pour les faire venir au Maroc espérant … Continue reading
Silence on tourne un film Morocco Now dans le Silence et le Secret Absolu
★A “Self-Proclaimed Star” Faded Away on the Hot Roof of New York Times Square★ ★ Une « étoile autoproclamée » s’est évanouie sur le toit brûlant de New York Times Square ★
Sahar Tlemsani Maghraoui• 2nd Directrice de Communication & RP 20h • 20 hours ago – Morocco in Time Square New York
Jaouda Ait El Mouden • 2nd General Manager at Lynx Media Maroc 17h • 17 hours ago – Time Square, yes we can
Both Directrice, they do not know the difference that in New York it is not called Time Square BUT Times Square
They Copied each other in the same Time, figuratively and textually
– Le Profile de Sahar Tlemsani Maghraoui n’est plus accessible a Linkedin – Elle s’est faite Auto – Censurée – Comme son habitude elle opte pour une autre forme de dérobade – Cette esquive volontaire de sa responsabilité et au lieu de faire face a une réalité, Sahar Tlemsani Maghraoui opte pour la fuite en avant qui traduit une désertion, une additionnelle attitude flagrante d’incompétence, une mauvaise gestion et une direction irresponsable de la Communication et de la Stratégie de Promotion du Morocco Now toute en mettant en relief le Gaspillage des campagnes publicitaires sans fondement menées sans savoir-faire qui en fin de compte alourdit la facture que paye l’Etat Marocain pour ses obligations extérieures ternissant toute l’image du Maroc au niveau international
Pire cela ne s’arrêtes pas juste a la faute disons de “Frappe”, mais quand tout ce beau monde remets sur le plateau la même faute, cela devient de la culpabilité de l’incompétence par association.
Des responsables qui dépensent de l’argent sans connaitre le revenu qui sera extrait d’un tel investissement des deniers publics. J’aimerais bien voir qu’ils investissent leur propre argent dans des affaires qui ne connaissent absolument rien de son revenu et ils vont le faire parce que c’est des bons patriotes et des nationalistes.
Cela va être une révolution contre la croyance que le Capital est aveugle, ignorant et en plus il est possède une nationalité plus forte que le profit.
Si on permet et accepte que des fautes (Time Square au lieu de Times Square in New York) se font même au niveau du nom de l’une des plus célèbres places dans le monde et ou on veut transmettre un message sur le Maroc, alors on ne doit pas s’étonner que l’on présente le Maroc dans l’autre bout du monde dans une ramassis de béton armé et de bloc de défense de la Normandie-Atlantique, un Bunker
Admirez la belle oeuvre de l’investissement du capital marocain
Morocco Expo 2020 Dubai , on est devenu des Blockhaus comme emblème du Développement Durable
Pavillon du Maroc Morocco Expo 2020 Dubai
Samia HERRAG • 2nd Minister Counselor 1w • Edited •
#BurjKhalifa à Dubai célèbre le lancement officiel par le #Maroc ce dimanche 10 octobre 2021, sa marque d’investissement et d’export #MoroccoNow, et ce, en marge de la participation du Royaume à l’#expo2020dubai Le Maroc en marche
على المسؤولين ان بعتمدوا توزيعا عادلا و ديموقىاطيا للاستثمارات الاجنبية والوطنية على كل المدن المغربية للخد من الفوارق التي تزدلد حدة .كفانا من منطق المغرب النافع وغير النافع.
كل خطب صاحب الجلالة تؤطد على مغرب قوي تسود فيه العدالة على جميع الاصعدة
Alors, s’il vous plaît, restreignez vous dans l’étalage du nationalisme mal placé, parce que vous donnez l’impression que ce n’est qu’une tentative de couvrir le manque de responsabilité en essayant de tourner la table contre l’autre, une table qui est vide.
Les discours sur le nationalisme et le patriotisme, c’est de la fumée qui cache l’incompétence et camoufle des attaques insidieuses de ceux qui agissent avec plus de compétence envers notre Patrie et la terre de nos ancêtres qui ont versé leur sang et perdu leurs vies et leurs fortunes dans sa défense.
Alors arrêtez s’il vous plaît de remettre indirectement notre attachement au Maroc, c’est maladroit et c’est des faux pas malencontreux qui traduisent le manque de connaissance et du savoir professionnel et véhicule des diffamations qui n’ont aucun droit d’exister.
Vous avez des réponses adéquates basées sur une connaissance du marketing et de la science de la communication, alors démontrez nous cela noir sur blanc.
Comme on dit in the USA, “Where is the Beef?”
N’essayez pas de nous rabâcher, remâcher et nous parler de recettes du nationalisme et du patriotisme qui n’a rien à voir avec ce que vous faites.
Vous êtes responsable de la promotion du Business Morocco Now, alors parlez nous de cela comme une PRO
Définissez des résumés et les points forts de la stratégie poursuivie justifiant de telles dépenses à Morocco Expo 2020 Dubai et à New York et au niveau des autres métropoles occidentales et internationales.
En réalité, tout ce que je décris fait partie de la Bonne Gouvernance et de la Responsabilité et le Respect des Citoyens dont le Souverain [Allah ya Nassrou] a souligné durant son récent discours adressé au Parlement”
“Soyez donc, que Dieu vous garde, à la hauteur de la lourde responsabilité nationale qui est la vôtre, car la charge de représenter les citoyens et de gérer les affaires publiques, aux niveaux local, régional et national, nous incombe à tous.
“Et quiconque aura fait de bonnes œuvres tout en étant croyant, ne craindra ni injustice ni oppression”. Véridique est la parole de Dieu.” Fin de la citation royale.
Dans cette optique du message royal, “Soyez donc, que Dieu vous garde, à la hauteur de la lourde responsabilité nationale qui est la vôtre, car la charge de représenter les citoyens et de gérer les affaires publiques, aux niveaux local, régional et national, nous incombe à tous.”
Vous êtes une des responsables de ce développement et non une responsable des chants patriotiques et des poésies nationalistes qui ne riment à rien.
Donc, avec tous mes respects à votre position de Directrice, je ne vous demande pas des hymnes et des chants de Sirènes.
Dans le cadre d’un tel dévouement envers le Maroc et au sein de Son Auguste Mohammed VI, veuillez répondre aux questions appropriées et pré-citées et évitez les bla-bla a couleur du drapeau marocain, dans mon intervention ici comme ailleurs, nous cherchons a attirer l’attention de ceux responsables sur les failles et les trappes qui peuvent coûter cher au Maroc, aux Marocaines et aux Marocains.
Dans le temps, Mr. Driss Jettou que j’avais rencontré personnellement, il s’occupait de tels audits appliquant les consignes de Sa Majesté. https://marocroissance.wordpress.com/2019/08/05/driss-jettou/embed/#?secret=RImEo8IZtW#?secret=FW09voKFu1
La Prévention est meilleure que la Guérison et au niveau du Business, on ne peut se permettre des faux pas alors que les First-Movers in the Market en profite pour agrandir l’écart de leurs avances et le Maroc se retrouve relégué à des niveaux de débrouillardise et à des actions de sauvetage irréfléchies et non avec des actions correctives de redressement et de progression au profit de son peuple.
Je vous fait parvenir des interrogations pour recevoir en échange des éclaircissements au niveau de la concrétisation des objectifs précis d’une stratégie de communication et de promotion visant et rentrant dans le cadre d’une stratégie supérieure encadrant le modèle de développement choisi par le Roi du Maroc pour les secteurs porteurs de la croissance du pays et de l’augmentation de la productivité nationale, la création des emplois pour une jeunesse marocaine qui représente plus que 47% de la population totale et pour la réduction de la pauvreté et de la misère, l’amélioration de la condition de la vie des plus démunis et l’attraction du Savoir-Faire, la technologie et l’éducation répondant aux besoins de la nation marocaine d’inovation en rapport avec les nouvelles normes de la division internationale du travail techno-logistique et cela dans le but de rehausser la Research and Development a tous les niveaux des opérations logistiques et industrielles du Maroc.
C’est à travers cette orientation que Morocco Now peut ancrer le Maroc dans une position plus forte pour la défense de son intégrité territoriale nationale et servir de locomotive pour le progrès dans la voie de l’indépendance et d’exemple dans le chemin du développement des nations africaines dans le cadre de l’Unité Africaine et l’intégration régionale et continentale.
Espérons recevoir vos réponses tout en souhaitant la réussite pour Morocco Now
Ceci dit, il n’en reste pas moins que ce que je définis ci-bas reste d’actualité, dans la métaphore, comme dans l’expression de la substance analytique et stratégique:
Comment vous apportez une élévation, une reconnaissance et une mise en valeur par ce film sans début sans fin donc sans objectifs médiatiques precis
Avancer des précisions sur la qualité d’un message publicitaire dans lequel vous écrivez Time Square, alors que c’est Times Square, puisque il s’agit selon vous de Time Square …
Expliquez nous donc le choix du temps de l’affichage et la raison de cela par rapport au ROI – Return on Investment, en tenant en compte ROO – Return on Objectives
Quel est le Return on Investment – ROI ?
Quel est le temps réel de l’impact sur les exportations marocaines?
Quelles sont vraiment les retombées d’un tel affichage furtif et générique sans aucun message?
Comment votre film publicitaire s’adapte-t-il aux cultures locales des Etats-Unis dans les campagnes internationales?
Ceci est encore plus alarmant vu que le même générique film est projeté à Dubaï 2020?
Quels sont les objectifs mesurés de cette communication?
Est ce que la stratégie média réalisée fut établie sur la base d’un diagnostic complet et nuancé pour pour les choix créatifs et leur adaptation à la culture du Business locale (Morocco Expo 2020 Dubai et New York)? Mise a jour: Auto – Censure, This post cannot be displayed – Message de Linkedin
[Pour Dubai, cliquer ici Jaafar Debbarh• 2nd Ex Directeur du Centre Culturel du Royaume du Maroc Dar Al-Maghrib à Montréal6d • 6 days ago Very nice . Ce soir #Morocconow sur #Borj_al_khalifa Proud of my lovely
country
]
Vendre des Courants d’Air à New York, my Moroccan Sistas and Bros, it is at the Times Square Where the Answer is Blowing the Wind for Morocco Now at this time.
Morocco MA is confused in Time Square as you published it.
“Morocco MA in Time Square New York us”
For me, Time Square is the essence of Action
While Times Square in New York is the Essence of less than 15 minutes of Fading Fame.
Time and Times: Not to be confused at this level of internationalization and decision-making, especially for a national driven ad brand campaign ??
Vraiment du délire de Self-Gratification – le fantasme de Self-Promotion – Self-Glorification.
«La publicité, c’est vendre des courants d’air, mais ce sont les courants d’air qui font tourner le moulin»
Marcel Bleustein-Blanchet, fondateur de Publicis
Ministry of Industry and Trade – Morocco
Moroccan Investment and Export Development Agency – AMDIE
Morocco Now
Tanger Med Port Authority
Global Center for Trade ★ GLOCENTRA
American Institute of Entrepreneurship in Africa
#respect #maroc #morocco #lemarocquejaime #marocroissance #export #brand #content #ROI #roimanagement #returnoninvestment #publicite #development #attractivité #offshoring
Said El Mansour Cherkaoui, Ph.D. You★ Consultant ★ International Supply Chain ★ Organizational Management ★ Entrepreneurial Planning ★ United States of America ★ France ★ Morocco ★ China ★ Sub-Saharan Africa ★16h Sahar Tlemsani Maghraoui
Vendre des Courants d’Air a New York, Where the Answer my Friend is Blowing the Wind
Vraiment du délire de Self-Gratification – le fantasme de Self-Promotion – Self-Glorification.
Quel est le Return on Investment – ROI ?
Quel est temps réel de l’impact sur les exportations marocaines?
Quelles sont vraiment les retombées d’un tel affichage furtif et générique sans aucun message?
Les écrans d’affichage dynamique sont des supports pour le Brand content, ici c’est Morocco Now qui est un slogan et non a Brand. Alors que le Brand est plutot dans l’exportation du produit, dans la Marque Made in Morocco, dans l’attractivité du Maroc en tant que Hub pour l’assemblage [Maquiladoras / Screw Drivers Factories].
Il s’agit d’exportations ayant une nomenclature diversifiée, au niveau des exigences relatives au contenu local, de l’origine des composantes et cela par rapport au produit final et sa destination extérieure.
Avec une telle complexité, comment peut – on calculer le Return on Objectives (ROO), dans un espace ou Brand content est absent?
« La publicité, c’est vendre des courants d’air, mais ce sont les courants d’air qui font tourner le moulin »
Marcel Bleustein-Blanchet, fondateur de Publicis
Like 1Reply3 Replies3 Replies on Said El Mansour Cherkaoui, Ph.D.’s comment
Sahar Tlemsani Maghraoui Author Directrice de Communication & RP 8h (edited)
Bonjour Monsieur,
Ma publication “virtuel” vous a intriguée; sachant que c’est une “simple photo” avec un “slogan” comme vous dites ;et a capté votre attention et aiguisé votre curiosité au point de m’écrire et de partager mon post sur votre profil (chose que je respecte et j’accepte) .
“Morocco Now”, est une MARQUE économique du Maroc , elle a embellit les murs des bâtiments géants de la mythique place new-yorkaise “Times Square”, mettant en avant les couleurs de notre Royaume qui s’impose aujourd’hui comme hub d’investissement et d’export. Suivie d’une bande d’annonce qui se défile à longueur de journée sur les grands panneaux d’affichage digitaux dans le cœur vibrant de la mégapole américaine. L’objectif c’est de faire rayonner le Maroc comme plateforme industrielle et exportatrice de 1er rang et d’accélérer les investissements étrangers, permettre à des gens”curieux”de googler et essayer de comprendre le but de ce film institutionnel projeté sur le Times Square, même critiquer puisqu’on peut jamais plaire à tt le monde
Soyons fière des efforts fournis et de tout progrès et promotion faite pour mettre en valeur notre Maroc #lemarocquejaime et profiter de chaque occasion pour lever les couleurs de notre drapeau
Said El Mansour Cherkaoui, Ph.D. You★ Consultant ★ International Supply Chain ★ Organizational Management ★ Entrepreneurial Planning ★ United States of America ★ France ★ Morocco ★ China ★ Sub-Saharan Africa ★ 5h Sahar Tlemsani Maghraoui
Je vous remercie de votre nationalisme et patriotisme, mais je ne parlais pas a ce niveau, veuillez lire le contenu de ma réponse que je vous fais parvenir dans ce lien:
New Morocco Now is Timely Squared in the Can at New York
Espérons recevoir vos réponses tout en souhaitant la réussite pour Morocco Now
Ministry of Industry and Trade – Morocco
Moroccan Investment and Export Development Agency – AMDIE
Morocco Now
Morocco Expo 2020 Dubai
Tanger Med Port Authority
Global Center for Trade ★ GLOCENTRA
American Institute of Entrepreneurship in Africa
#respect#maroc#morocco#lemarocquejaime#marocroissance#export#brand#content#ROI#roimanagement#returnoninvestment#publicite#development#attractivité#offshoring
Sahar Tlemsani Maghraoui Author Directrice de Communication & RP 3h(edited)
Said Cherkaoui je viens de lire votre article
Vous devez me payer pour vous donner un peu de mon temps et répondre à votre rapport et accusations à tort et à travers hhhhh c’est un interview dis donc !
Je suis vraiment choquée .
Je ne vais pas prendre vos accusations au sérieux et je préfère vous répondre par un smiley face
Merci à vous.
Hard luck
Directrice de Communication & RP 2h • Edited • 2 hours ago
Monsieur Said Cherkaoui je vois que peut-être vous vous êtes trompé de destinataire en écrivant tout un article sur mon “post la MARQUE MOROCCO NOW”
Je laisse mes contacts LinkedIn m’expliquer ce qui est écrit peut-être je n’ai pas bien saisi votre message… ( L’Article est tres long , je ne peux pas le poster en entier)
Agence Marocaine de Développement des Investissements et des Exportations – AMDIE
Morocco Now
5 / 6
AU SECOURS LES LECTEURS – SAUVEZ MOI de ce “Petit Marocain” qui se trompe de route et d’adresse.
Votre première réponse fut une dérobade par une louange et une éloge du patriotisme et du nationalisme mal placés.
Maintenant, vous vous dérobez encore une nouvelle seconde fois, en nous présentant un Kaléidoscope de mon écrit avec cette note:
“Je laisse mes contacts LinkedIn m’expliquer ce qui est écrit peut-être je n’ai pas bien saisi votre message ( L’Article est très long , je ne peux pas le poster en entier)”
Bravo Madame la Postière pour la délégation de la faculté de Compréhension: “Leadership in its top expression and action.”
Votre explication Je ne savais pas que vous avez des employé/es camouflé/es en Lecteurs, y compris moi-même un de vos lecteurs aussi.
J’espère que vos employé/es lecteurs/rices reçoivent les mêmes salaires et bénéfices que vous.
Si vous ne êtes pas Responsable de vos actes, alors partager mon article avec les vrais responsables .
Toutes ces dérobades ne sont en fait que la traduction de l’adage: “To hide the forest behind a leaf”
Le temps est l’essence de l’action et ce temps est juge de l’action aussi.
A mon tour, je délègue au temps de comprendre et nous
Said El Mansour Cherkaoui, October 16, 2021 1:33 am
Cet article est la preuve flagrante que certains responsables de la renommée que le Maroc devrait acquérir à l’étranger et au niveau international et cela en tant que pays plein de compétences et de potentiel tant pour son propre développement que pour ces compagnies, ces investisseurs et ces institutions académiques ou sociales que le Maroc dépense des millions pour les faire venir au Maroc.
Des efforts et des sommes en devises étrangères sont ainsi mise en avant en espérant que cela puisse attirer attirer des compagnies et des productions pouvant contribuer à réduire le chômage, à accroître la création d’emploi, à transférer le savoir-faire, à rehausser le niveau de vie des citoyennes et des citoyens.
Alors imaginez que tous ses efforts louables qu’ils soient ne prennent pas la direction attendue ni prennent le soin d’être menés par des responsables compétent/es et des professionnel/les aguerri/es et expérimenté/es dans les domaines correspondants du Marketing, de l’image de marque et de la mise en valeur du positionnement du Maroc sur la scène internationale.
Ces attentes sont légitimes vu que les dépenses qui se font au niveau international sont lourdes en somme et en impact sur les rentrées du Maroc. Les paiements versés par le Maroc pour les services des compagnies étrangères de Public Relation et de Marketing International et de Consulting se font avec des barèmes locaux et des taux pratiqués sur place et en plus se réalisent en monnaie nationale du pays ou ces compagnies offrent leurs services. Un impact direct sur la balance des paiements et sur le taux de convertibilité du Dirham peut résulter de ces transferts de paiements.
Considérant tous ces enjeux, les impératifs des défis faisant face au Maroc sur le plan mondial et leurs répercussions multiples au niveau immatériel et matériel, il est tout à fait normal d’avoir des attentes comme quoi que les décideurs de tels programmes de communication et de PR a propos du Maroc soit à la hauteur de la tâche et connaissent le terrain international ou elles / ils font naviguer le vaisseau Made in Morocco et Morocco Now et qu’en tant que Leaders a bord connaissent effectivement la direction et l’objectif – destination de toutes ces manœuvres pour faire arriver ce vaisseau Marocain a bon port et d’en faire une preuve des prouesses et de l’adresse et des potentialités du Maroc en face à ses concurrents comme face aux organisations de toutes sortes potentiellement intéressé par le Maroc comme partenaire commercial, comme location de production ou d’investissement ou comme destination à visiter et à connaître au niveau culturel et social.
Cette campagne menée à Dubai Morocco Expo 2020 Dubai et le film faisant la promotion du lancement de Morocco Now tant à Dubaï et qu’à New York ne peuvent se prévaloir et ne véhiculent nullement des considérations que j’ai précité et je ne suis pas le seul à le souligner ni à le constater, malheureusement.
Les personnes présentant cette campagne lorsque on leur demande l’impact de ces deux promotions hors-séries et surtout comment s’est fait le choix de New York, leurs réponses et réactions sont conduites à travers un bombardement par leurs petits copain/es (qui comme par hasard désigne Times Square par le nom de Time Square, montrant leurs aptitudes à se copier entre elles et entre eux et démontrant leurs manques flagrant de connaissance du terrain et New York comme Marketplace) des sites médiatiques par des tentatives judicieuses dans le camouflage dans un drap de prestige et de fierté nationale en mettant en avant et en questionnant le sens de patriotisme et de nationalisme à celles et à ceux qui osent leur poser de telles questions.
Le présent article jette le regard sur de tels agissements et dévoile l’inaptitude et l’incompétence de certain/es de nos responsables, des soit-disant Professionnel/les du Métier.
Ces responsables qui une fois démasqué/et, tentent de remettre en cause notre nationalisme et notre patriotisme, se murent dans leur incapacité de comprendre nos doléances et nos interrogations et comme ultimes manœuvres, ils/elles confirment leur dérobade en se faisant expulser par la porte de derrière [Sortie de Secours].
Je vous laisse suivre le parcours et la trajectoire d’un tel comportement d’une Directrice de Communication et de PR Madame Sahar Tlemsani Maghraoui qui a fait annuler son compte a LinkedIn lorsque elle ou un de ses supérieur/es se sont rendu/es compte que leurs pratiques possèdent des failles et des lacunes qu’ils ne peuvent / qu’elles ne peuvent surmonter par des explications bidons comme ils et elle a fait face au commun des mortels au Maroc.
Leur manipulation s’est trouvée face au mur de la compétence de mes questions et de mes interrogations qui n’ont qu’un seul but, c’est de rendre au/x Marocain/es ce qui appartient au Maroc.
On vend maintenant Pauvre Morocco comme une marchandise a New York comme l’Infamous Marketing Fiasco of Morocco Now in the same square.
Morocco Now: Où sont les Pro du Métier?
https://globalleverage.wordpress.com/2021/10/16/morocco-now/
Vraiment, plus on bouge, plus on se noie dans le désastre et le marasme.
En pleine période de bouleversements géostratégiques, qu’est ce que vous trouvez à faire, c’est dépenser de l’argent du contribuable, durant le mois de Ramadan, le peuple marocain a du mal à acheter la tomate pour son Harira.
Tous les billboards ont marques éphémères, et vous mettez des flashs coûtant des millions aux pauvres petit/es Marocain/es, l’équivalent de plusieurs classes fournies en ordinateur et équipement scolaire dans l’Atlas et les campagnes marocaines.
★ Ces campagnes publicitaires devraient être financées par les compagnies de voyages, les Courtiers, les Charters qui ne transfèrent pas les recettes qu’ils encaissent de leurs ventes:
★ des séjours au Maroc,
★ des nuits dans les hôtels,
★ des réservations des Riads et des Restaurants
★ des maisons privées,
★ des locations de voiture,
★ des tickets d’avion,
★ et leurs ventes de tout le Maroc ..★.. etc ..★..
9 / 11
Morocco Now 19,005 followers 1d • 1 day ago Morocco Now, Sustainable
A strategic vision, and swift progress in decarbonizing the industry!
Morocco Now, the future-proof platform to capture opportunities in a changing world.
#Sustainable #Competitive #WellProven #Agile
448 Abdelhadi Benghini and 447 others
12 comments
Dr Said GUEMRA 2nd degree connection 2nd Expert Conseil en Management de l’Energie 4.0 1d To my knowledge, the share of renewable energies in 2020 in the Moroccan energy mix is 17.8%, I do not see where 37% comes from in the energy mix in 2020. The installed capacity in renewables was 31.7% of the total installed capacity excluding step. If we are talking about the electricity mix, we must say 17.8% in 2020, and not 37%.
Soufiane ELMAAZOUZI out of network 3rd +Ingénieur Chargé d’affaires fluides 13h Greetings sir said, you explained well Like 1 Reply
said LEFRERE 2nd degree connection 2ndIngénieur Génie climatique -Groupe ARTELIA 3pm You are very nice, but you should not start to salt the image of « Morocco Now » by sharing such a completely erroneous statement.
Either the rate indicated or the term « Energy Mix » should be edited. Like 2
Dr Said GUEMRA 2nd degree connection 2nd Expert Conseil en Management de l’Energie 4.0 2pm Perfectly. it was necessary to come out with figures corresponding to reality. In this area there is the electricity mix which is 17.8%, and the energy mix (in primary energy) which is 8.2% in 2020. I do not know what mix is talking about this publication which does not help this. beautiful image that we want to give: Morocco Now. ONEE’s balance sheet is public, and nothing can be hidden or inflated
Morocco Now Inflates Energy and Spends Money Without Considering Reality
Another Gaffe Full of Exaggeration and Inflating the Share of Renewable Energy in Morocco
I don’t know why, those responsible for this good initiative that is Morocco Now, make a fool of it and have a bad performance and worse, there is a sense of wanting to sing faster than the music and to run faster than the authentic lifestyle
The worst is when we show them that the reality is quite different, they play you the card of patriotism and nationalism which becomes exhausting and stupid or they shirk and disappear completely from circulation, read this completely. article that I wrote for this purpose below and which describes this voluntary lack of professionalism and integrity on the part of Morocco Now.
Morocco Now 18,887 followers 1w • Edited • 1 week ago
Thanks to all the transport and logistics mega projects achieved, Morocco is leading the infrastructure ranking in Africa.
Learn more at www.morocconow.com
Vous présentez et vous tentez de mettre en relief l’infrastructure du Maroc mais vous omettez de bâtir une structure structurée de l’infrastructure: le Chasseur Chassé
A picture is worth 1000 words
and in the case of Morocco who is still confused with Monaco
Make A picture of Morocco that is worth and is an expression of 1000 and 1000 years of civilization.
The Map should be clearer. Needs better picture for such promo and for international level of quality
There is harsh competition around the world just for looking good and where the first impression is the one that wins.
In addition with all these generic and stereotyping trends, it is better not to give them the chance to expand.
At any cost do not make Morocco to look in a FUZZY PICTURE LIKE THE ONE HERE with no quality presentation.
En plus, dans cette carte, on ne peut déchiffrer ni les noms des sites ni les liaisons de la logistique des transports.
Said El Mansour Cherkaoui, Ph.D.
Global Center for Trade ★ GLOCENTRA
American Institute of Entrepreneurship in Africa
Oakland Chronicle
Silence we’re shooting a Morocco Now film in Silence and Absolute Secret
Ministry of Industry and Trade – Morocco
Moroccan Investment and Export Development Agency – AMDIE
Morocco Now
Tanger Med Port Authority
Global Center for Trade ★ GLOCENTRA
American Institute of Entrepreneurship in Africa
#respect #maroc #morocco #lemarocquejaime #marocroissance #export #brand #content #ROI #roimanagement #returnoninvestment #publicite #development # attractiveness #offshoring
AIDEZ LES LECTEURS – SAUVEZ-MOI de ce « petit marocain » qui s’est trompé de route et d’adresse.
Votre première réponse a été une évasion des louanges et des éloges du patriotisme et du nationalisme déplacés.
Maintenant, vous vous dérobez encore une fois, en nous présentant un Kaléidoscope de mes écrits avec cette note :
« J’ai laissé mes contacts LinkedIn m’expliquer ce qui est écrit peut-être n’ai-je pas bien compris votre message (L’article est très long, je ne peux pas le poster en entier) »
Bravo Madame la Postière pour la délégation de la Faculté de Compréhension : « Le leadership dans son expression et son action supérieures.
Votre explication Je ne savais pas que vous aviez des employés déguisés en Lecteurs, dont moi aussi un de vos lecteurs.
J’espère que vos employés lecteurs recevront les mêmes salaires et avantages sociaux que vous.
Si vous n’êtes pas responsable de vos actes, alors partagez mon article avec le vrai responsable.
Toutes ces évasions ne sont en fait que la traduction de l’adage : « Cacher la forêt derrière une feuille »
Le temps est l’essence de l’action et le temps est aussi le juge de l’action.
A mon tour, je délègue du temps pour comprendre et justement nous récompenser.
Note by […]
Economics FinanceNote by Said El Mansour Cherkaoui, Ph.D.:
The preeminence of British Banks such as Barings and Rothschild Maison de courtage and bankers that traces their profits making in the arm trade contingent of the mercantilist trade of the iberian colonialism in Latin America. The change of the world trade epicenter had provoked continual functional losses to such banking and monetary systems identified in the pretension of imperial domination and conquest.
These changes were promulgated first by the courtesans of the British Crown of Great Britain who promoted the Classical School of Economic thoughts that have addressed the value and the money with Adam Smith and David Ricardo which have prompted the response of Karl Marx, going through all the changes taking place in Europe giving their inter-bilateral wars and the rise of fierce competition to conquer colonies following the loss of the North Hemisphere by the British Crown.
New forms of exchange around the world was implemented in form of liberal trade and direct transfer of value through establishing direct line of exchange and transfer of values that was accentuated by the abolition of the slave trade and newly “emancipated slaves” transformed in wage-earners but more unemployed masses in the cities like in the “Fields of Nightmares”.
From India, Central Asia, China to North and South Africa and the Middle East with the “Sick Man of Europe” resulted in the rise of Communist Soviets and in two consecutive world wars and later breaking the Gold Exchange system and paving the path for the first clashes on money not on territories.
The time when John Maynard Keynes was addressing the issue of the money value during the Bretton-Woods and up to the monetarist of Friedman and the Economic School of Chicago and their Avatars as Techno-militaro-bureaucrats of Latin America, that was relayed by the Arab Boycott and the quadrupling of oil price followed by the waves of stagflation.
Populism, defense of the Western and Christian Values and Socio-fascism became the New Popular Formula feeded to the masses by regimes that have been collaborating with the new form of multinationalisation of capital and circulation of money.
We have seen that to be the stimulant for imposing regimes that are supported on their ideological colors, Red you are, Red you will be marginalized and do not cross the line drawn in the sand. In face of that, we have “Pueblo Unido Jamás Será Vencido” and “No Passaram.”
Stagflation has been here some time, it is like a dormant virus of the capitalist system. It came out when the inflation has nested in the major economic sector and in the first place, the interest rate. These are the symptoms that there is here is a deep recession that will be only reduced by the Federal spending to stimulate the growth and the consumption as well as demand for heavy equipment including the arm sales and race taking place around the world.
New forms of instability are needed around the world also to instill fear and increase the spending and purchase of weapons.
These purchases will be financed through loans and credits which will increase the demand for the Euro and the Dollar and give a stimulus to the growth in western economy and support the need to keep the interest rate at the level needed to be in accordance with the demand and the rate of convertibility of the dollar and the euro.
The increase of the external debt for countries that are hesitant in joining the sanctions against Russia and the distancing from China will be exposed to the reduction of their revenues coming from their exports, given that the primary goods and natural commodities will have their pricing relatively lower to the manufactured products and the weapons.
In time of scarcity of international capital and foreign direct investments, external debt will be the leverage to flatten the playing field and recuperate the excess of dollars and euros floating in the international market given that the increase of interest rate can be a double sword hurting the economy through the reduction of investment and bank loans.
Email: saidcherkaoui@triconsultingkyoto.com
Said El Mansour Cherkaoui
Updated on 9/10/2022 – Initially published on June 26 6:46 pm The State of the World and the Global Economy
Said El Mansour Cherkaoui
#OECD #inflation rises to
.
% in September 2022, with inflation pressures broadening beyond food and energy in most countries. Find out more
https://fal.cn/3tm8R … Continue Reading →
Said El Mansour Cherkaoui Oakland California – USA 15 Janvier 2021 Work and Research by Said El Mansour Cherkaoui on Latin America L’Accord de libre-échange nord-américain (ALÉNA) – … Continue reading Said El Mansour Cherkaoui and Latin America GLOBALLEVERAGE Amérique Latine: Secteur Informel, Commerce Électronique et Subcapitalisme Le secteur informel du Pérou, du Brésil, de la Colombie comme au … Continue Reading →
The “Financialisation” of Capitalism as defined by Rudolph Hilferding was also the result of the emergence and the shaping of the “Subcapitalism” in the former economies of the European countries, such as the Latin American economies following their independence from Spain and Portugal and their dependency on the capital from Great Britain.
Said El Mansour Cherkaoui, created the concept of “Subcapitalism” and defended it as Doctoral Thesis following 14 years of research and the writing of an initial 1400 pages for his thesis which the Thesis Committee could not have time to read it entirely and I have subsequently obliged to reduce my thesis to 400 pages.
To read more on this:
Doctoral thesis CHERKAOUI Said El Mansour – Réf ANRT : 13965
Creation of the concept of subcapitalism through the study and analysis of the integration of Latin American economies in international economic relations and the global economy. Argentina, Brazil, Chile and Peru are the case studies of this research and analysis of their participation in international trade and the modernization of the policies they have applied to respond to favor the attraction of new European immigrants and to adapt to the new demands of international capital. under the direction of the United Kingdom and related banks and trading houses which direct and dominate international transactions between peripheral third countries and Western Europe.
Identifiant BU : 92PA030099 – 403 pages – Disponible au format microfiche – Contact us
www.cadtm.org/Learning-from-Hilferding-s-Finance-Capital-Money-banking-and-crisis-tendencies
by Patrick Bond – 25 March 2021
Contents
A century ago, as the Weimar Republic was set up in Germany, the leading Marxist strategist aiming to socialise the economy was Rudolf Hilferding (1877-1941). Although he was an Austrian, and was educated in Vienna as a pediatrician, Hilferding rose to prominence under Karl Kautsky’s mentorship, and served briefly in mid-1923 and again in 1928-29 as Germany’s finance minister. Neither effort was successful: on the first occasion he was unable to control hyperinflation, and on the second, could not stand up to economist Hjalmar Schacht, who in leading the Reichsbank (prior to serving as Adolf Hitler’s lead economist), pressured the social democratic government with loan conditions, leading to Hilferding’s firing shortly after Wall Street crashed.
But it is for a book written in 1910 that Hilferding is best remembered: Finanzkapital. His theory of money, credit and capitalist crisis tendencies has never been more important to reconsider than today, for its strengths and weaknesses have been exposed to 110 years of testing. Similar to his own era, the current conjuncture combines financial power and vulnerability, with Finanzkapital now popularly described as “financialisation.” And unearthing the laws of motion of the ‘finance capital’ formulation requires digging deeper than what was apparent in early 20th century Germany, Hilferding’s main empirical site of praxis, since so many features of economic organisation evolved in very different directions than he predicted.
While Hilferding contributed to understanding how generalities of the capitalist debt system – especially corporate financing – could be advanced beyond the disorganised state of Marx’s Kapital Volume 3, a critique is essential for both intellectual and practical purposes. And Hilferding’s masterwork, published when he was just 33 years old (and translated in 1981 for publication by Routledge and Kegan Paul), remains the most detailed Marxist analysis ever undertaken of the role of finance in the capitalist economy. In spite of errors, the book is a leading example of how to develop an applied analysis beginning at the very roots of political-economic theory.
But the errors were profound, and the contrast with classical Marxism is most explicit when comparing Finance Capital to the ‘breakdown’ theory of Henryk Grossman (1992), who revealed in March 1929 several profound flaws in Hilferding’s conception of banks and the real economy. Hilferding (1981, p.368) attributed far too much managerial power to “six large Berlin banks” whose control, allegedly, “would mean taking possession of the most important spheres of large scale industry, and would greatly facilitate the initial phases of socialist policy during the transition period, when capitalist accounting might still prove useful.” (The difference between German financial-industrial relationships and others in the West meant Hilferding’s observations were context-specific.)
Just before he took up his second posting as finance minister in 1928-29, Hilferding contradicted Grossman: “I have always rejected any theory of economic breakdown. In my opinion, Marx himself proved the falsehood of all such theories” (Liepziger Volkszeitung, 27 May 1927). But, replied Grossman (1992, 52-53), “No economic proof of the necessary breakdown of capitalism was ever attempted. And yet, as Bernstein realized in 1899, the question is one that is decisive to our whole understanding of Marxism… Marx provides all the elements necessary for this proof.”
In contrast to Hilferding’s reformism Grossman (1992, 200) concluded in 1929, “The historical tendency of capital is not the creation of a central bank which dominates the whole economy through a general cartel, but industrial concentration and growing accumulation of capital leading to the final breakdown due to overaccumulation.”
Hilferding’s theory of capitalist self-stabilization was not anticipated by Marx and Engels when Kapital Volume 3 was being assembled. Nevertheless, from 1870 to 1920, according to Paul Sweezy [1972, p.179]), it appeared to many observers that a new institutional form – “finance capital” – was achieving hegemony over the entire world economy. In the 1910s, the leading German Marxists – Kautsky, Bernstein and Bauer (although not Luxemburg) – believed that banks and other financial institutions had actually pushed capitalism into a new and perhaps final stage, the era of monopoly, imperialist, “finance capitalism.” Even revolutionary Russian theorists of the first decades of the twentieth century – Bukharin and Lenin – adopted this broad argument, citing Hilferding generously, although there was internal debate about whether this final stage was one of strength or one of decay.
However, from 1929-33, the banks that were supposedly at the centre of power in this new era of capitalism suffered systemic bankruptcies, culminating in crashes that left the financial system in tatters. Still, until then, Hilferding’s theory of “finance capital” had much to recommend it, as “the unification of capital. The previously distinct spheres of industrial capital, commercial capital and bank capital are henceforth under the control of high finance.”
In 1915, Bukharin used the phrase “the coalescence of industrial and bank capital.” And in 1917, Lenin termed finance capital “the merging of industrial with bank capital.” These definitions each emphasise institutional power bloc characteristics, at the expense of failing to draw sufficient attention to the vulnerability implicit in financial relations.
In contrast, Grossman’s The Law of Accumulation and Breakdown of the Capitalist System, published presciently in March 1929, insisted that over-accumulation of capital was the core contradiction, and the implications for financial crisis were potentially vast, a point demonstrated by stock market meltdowns within seven months’ of the book’s publication. The increasingly centralized financial system that Hilferding wrote about – and tried unsuccessfully to regulate as German finance minister – did not provide the economy with more stability, but instead with greater vulnerability. Nevertheless, Hilferding maintained his thesis as late as 1931 (Sweezy, 1968, p.298), and it is useful to uncover where his argument came from and went to, in order to assess what mistakes we must avoid today when grappling with financialization’s powers and vulnerabilities.
In Finance Capital, Hilferding attempts no less than “a scientific understanding of the economic characteristics of the latest phase of capitalist development” (1981, p.21). The two characteristics most important to this phase are the growth of trusts and cartels, and the emergence of banking hegemony. Hilferding’s emphasis reflects authentic concerns of the era, for the first few years of the 20th century, when Hilferding’s ideas were forming and the book was written, saw an unprecedented quickening of the centralization of banking capital and important new geopolitical developments.
But Hilferding also sought a theoretical framework that might apply across the history of capitalist development. With a work geared to finance and credit, it is not surprising that the defining theoretical idea is exchange, so it is with money that we begin a survey of his thought.
The starting point in Hilferding’s analysis of the finance capital phase of capitalist development is when credit rises, beginning with the necessity of ‘idle money,’ which plays a mediating role in the relationship of money to capitalist investment. Institutions that develop in response to the functions of money and credit take on new functions of their own. Huge banks, joint stock companies, trusts and cartels are logical outcomes of these processes.
But inherent contradictions based in the nature of production reassert themselves, leaving the capitalist system in crisis. The institutions of Finance Capital develop their own responses to crises, resulting in imperialism and a new role for the state.
To be sure, Hilferding reintroduces the Marxist categories of commodities, value, and socially-necessary labor time within production, since contradictions emanating from this core are the basis for an analysis of the breakdown in capitalist exchange. Within the process of capitalist exchange, money is necessary because ‘the law of price’ “requires a commodity as a means of exchanging commodities, since only a commodity embodies socially necessary labor time” (1981, p.35).
Money is thus a means of exchange, but it is also a commodity which expresses the value of all other commodities. This dual role – as medium of circulation and measure of value – is important as a contradiction that allows crises to develop, and it will be introduced again later. Some brief explanation is in order as to how money, credit, and financial institutions are related.
As a medium of circulation and as a measure of value, money must be fundamentally tied to commodity production. “The value of money and the price of bullion follow completely divergent courses” (1981, p.47), so even the power of the state in manipulating coinage or bullion markets is insufficient to prevent the value of money from expressing “the socially necessary value in circulation” (1981, p.47).
Hilferding rejects the quantity theory of money, arguing against the notion that “changes in value are caused by either an excess or deficiency of money in circulation” (1981, p.56). Instead, money plays an accommodating role. It is brought into circulation according to its supply and the unmet demand for it. Hilferding concludes, “At any given moment, all the commodities intended for exchange function as a single sum of value, as an entity to which the social process of exchange counterposes the entire sum of paper money as an equivalent entity” (1981, p.56).
However, money must also have its own intrinsic value. Hilferding acknowledges that for two reasons at least, there must be a gold or other metal complement to money. The first reason is the need to settle international balances. Pure paper currency that is not based on metal “would be valid only within the boundaries of a single state” (1981, p.57).
States might be tempted to change the quantity of money in their economies without a corresponding change in the value of commodities. The second reason is that in addition to being a medium of exchange and measure or value, money also logically serves as a store of value, and for that purpose, a metal base is necessary because it is “in a form in which it is always available for use” (1981, p.58).
Money “as a means of payment” (1981, p.60) is introduced to describe how as a commodity, money can itself be sold and paid for later in the form of credit money. “This means that the money which is turned over in payment can no longer be regarded as a mere link in the chain of commodity exchanges or as a transitory economic form for which something else may be substituted.” (1981, p.60) In addition to lubricating the exchange process, money – particularly credit money – plays a decisive role in the scope and scale of exchange relationships.
Credit money is treated in a careful, detailed way by Hilferding. Several important characteristics are noted. First, credit money is a function of individual business decisions, not the state. As such, individual credit money can be created at any time and can be depreciated when loans are not repaid.
Second, credit money facilitates a far more rapid velocity of circulation than does money as merely a medium of circulation. Thus, “The greater part of all purchases and sales takes place through this private credit money, through debit notes and promises to pay which cancel each other out” (1981, p.64).
Third, and most importantly in times of crisis, credit money makes “the circulation of commodities independent of the amount of gold available” (1981, p.64).
Credit money is itself initially and ultimately dependent upon conditions of production and circulation. When an economic crash has occurred, Hilferding notes, a fall in commodity prices “is always accompanied by a contraction in the volume of credit money… [which] is tantamount to a depreciation of credit money” (1981, p.65).
At that point, credit money “becomes suddenly and immediately transformed from its merely ideal shape of money of account into hard cash” (1981, p.65). It is this contradiction between the financial system and its monetary base that is the hallmark of financial crises.
The relationship of credit to a ‘long-wave’ economic cycle – as defined by Kondratieff (1926) – which culminates in a crash must be examined closely to understand the full importance of Finance Capital. In fact, Hilferding does not use the long-wave description, but his reasoning is quite in keeping with it. He begins by outlining some mechanisms by which credit assumes a greater role in the economy as growth or the capitalist system progresses.
Hilferding looks at the process of growth from the viewpoint of the circulation of industrial capital. Industrial capital is created through the combination of means of production (MP) and labor (L). While in Hilferding’s view, it is rare to find loans arranged for the purpose or hiring labor (a mistake discussed below), credit is a common form of financing the purchase of means of production. This is particularly true during the expansionary period, as demand for goods increases, prices rise, the quantity or money demanded increases, and a regular rate of return appears guaranteed.
As a result, financiers are more able and ready to extend credit. Indeed, Hilferding argues that “as capitalist production develops there constantly takes place an absolute, and even more a relative, increase in the use of credit” (1981, p.70). During the expansion, the organic composition of capital increases, as “the growth of M-MP outpaces the growth of M-L, with the resulting more rapid increase in the use of credit compared with the use or cash.” (1981, p.70)
In the process of spurring on production, credit acquires “a new function” (1981, p.70), that of taking idle money capital and putting it to use. At the level of the firm, idle money, or ‘hoarding’ plays a role when fixed capital is consumed and needs to be replaced.
To preserve continuity in the production process, it is important that the amount of fixed capital consumed be measured in terms of money. This “requires periodic hoarding, and hence also the periodic idleness of money capital” (1981, p.74), ideally available to a firm through its bank account, where it will earn a rate of return. Idle money is also a factor, Hilferding argues, as surplus value begins to build up in an enterprise but before there is actually enough to use as productive capital for new investment.
Idle money increases as fixed capital grows relative to circulating capital, requiring more funds held in a state of readiness. However, with the development of new technology, the turnover time of capital shortens, leaving idle money less time to be idle. In terms of the long-wave, prices start relatively low, technological advances are introduced rapidly, and turnover time is relative quick. At the cycle’s peak, there are greater amounts of idle money available due to longer turnover times, prices are rising, and the demand for credit is higher.
Credit is paid for by interest. In his discussion of banks, Hilferding analyzes the nature of the supply of and demand for credit. He notes that interest is utterly unlike profit: “It does not arise from an essential feature of capitalism – the separation of the means of production from labour – but from the fortuitous circumstance that it is not only productive capitalists who dispose over money” (1981, p.100).
Interest is not autonomous, however: “an increase in production and thus in circulation means an increased demand for money capital which, if it were not matched by an increased supply, would induce a rise in the rate of interest” (1981, p.103). The amount of cash in the economy, the health of the national currency, and the nature of the gold stock also have a role in mediating the increased demand for money capital. So ultimately, “In a developed capitalist system, the rate of interest is fairly stable, while the rate of profit declines, and in consequence the share of interest in the total profit increases to some extent at the expense of entrepreneurial profit” (1981, p.104).
Hilferding concludes that “since money is always needed to defray the cost of circulation, and capitalist production has a tendency to expand more rapidly than the supply of money capital, the resort to credit becomes a necessity” (1981, p.80). A system of managing credit is also a necessity, and exists through a complicated maze of financial entities that have a symbiotic relationship to corporate institutions such as joint stock companies, trusts and cartels.
First, consider banks. Financial intermediation by banks is necessary, Hilferding argues, because productive capitalists are unable to adequately cancel debts and credits amongst themselves. Productive capitalists may offer each other bills of exchange or other kinds of promissory notes in attempting to realize a balance of payments without the inconvenience of money exchange.
But in Hilferding’s day, these direct credit instruments were found to be inferior to the credit money offered by banks. This was both because banks were more creditworthy than individual productive capitalists and because there were efficiencies and economies of scale involved in allowing banks to mediate.
For example, the time period required to verify the quality or a promissory note or the time period required to collect collateral on a note in the event of refusal to pay could be bridged by the use of bank notes. In issuing its own notes – instruments which effectively substituted for the promissory notes offered by productive capitalists – a bank served to guarantee in the public’s mind the safety of the investment. The bank also offered a mechanism for sharing the risk of the demise of any given productive capitalist.
In sum, Hilferding argues, credit offered by banks “extends the scale or production far beyond the capacity of the money capital in the hands of the capitalists. Their [productive capitalists’] own capital simply serves as the basis for a credit superstructure… ” (1981, p.84).
Here the spatio-temporal features of finance are vital: “What the banks do is to replace unknown credit with their own better-known credit, thus enhancing the capacity of credit money to circulate. In this way they make possible the extension of local balances of payment to a far wider region, and also spread them over a longer time period as a consequence, thus developing the credit superstructure to a much higher degree than was attainable through the circulation of bills limited to the productive capitalist” (1981, p.86).
Hilferding acknowledges an important role for state intervention in the event of fear that excess bank note issuance might lead to problems in dilution or inconvertibility of the notes. But regulation of credit in this manner “fails as soon as circumstances require an increased issue” (1981, p.85). Then, when crisis occurs, there is a sharp increase in demand either for high quality credit issued by the banks thought to be most stable, or for legal tender state paper money.
Hilferding places great emphasis on the distinction between the credit described immediately above (circulation credit) and the credit created through mobilizing idle money (capital credit). The latter is an actual transfer of funds from unproductive sources to productive capitalists, while the former is “merely a substitute for cash” (1981, p.87). The power of finance capital lies not in lubricating the circulation of credit money, but in supplying capital credit in specified amounts, to specified borrowers, at specified times.
It is here too that the difference between ‘financial capital’ and finance capital is evident, and that Hilferding’s definition of finance capital is understood. The capital of banks is oriented to issuing credit to accommodate circulation.
Finance capital, on the other hand, involves the centralization (through the mediation or banks) of productive capital’s idle money for the purpose of reinvestment in other productive capital. Productive capital – i.e., industrial and commercial capital – is also a lender in this sense, and the bank becomes a borrower. Finance capital, then, can be seen as the ‘unification’ of banking capital and industrial/commercial capital.
The distinction between providing circulating credit and capital credit is also important to the bank from a technical standpoint. Because it is based on generally short-term notes from productive capitalists, circulating credit is returned to the bank in a manner consistent with the way it was lent. In Hilferding’s words, “its value is reproduced during a single turnover period” (1981, p.91).
But capital credit is extended as a kind of long-term investment in the enterprise; its value is returned “in piecemeal fashion, in the course of a long series of turnovers, during which time it remains tied up.” (1981, p.91) Because of this, the provision of circulating credit (more commonly used by merchant or commercial capital than by industrial capital) allows the bank more freedom of action than does the provision of capital credit.
The difference between circulating credit and capital credit can be seen not only in the accounting process for debt repayment, but also in terms of the relative power position of banks vis-a-vis other capitalists. Hilferding develops another distinction in credit categories – that of commercial (or payment) credit as opposed to investment credit – which parallels the circulating credit versus capital credit distinction.
In issuing commercial credit, banks do little more than collect bills of exchange, promissory notes, and other forms of payment from industrial and commercial capitalists. The banks are thus heavily “dependent on the state of business and the payment of bills” (1981, p.92). In issuing investment credit, on the other hand, a bank invests funds in the fixed capital of an enterprise and thereby assumes an entirely different, more important, role.
In terms of relative power, Hilferding notes that “Every merchant and industrialist has commitments which must be honoured on a specified date, but his ability to meet these obligations now depends upon the decisions of his banker, who can make it impossible for Him to meet them by restricting credit… the bank is able to dominate and control the function much more effectively” (1981, pp.92-3).
The distinction is also felt across national boundaries, as central banks take on different roles depending on, for example, the pressure to invest in foreign capital or national regulations concerning use of the gold stock. The Bank of England, Hilferding argues, had far less autonomy than the Bank of France, because the former extended largely commercial credit, while the latter, with “its enormous gold reserve and relatively small commercial obligations” (1981, p.92), served as the principal international investment banker.
One function of the increased power of banks which specialize in investment credit is their ability to affect the profitability of productive capital. Industrial capitalists can use credit to gain an advantage over their competitors in at least two ways, by borrowing:
This latter mechanism allows prices to fall but does not affect the capitalists’ profits on that proportion of output produced with equity capital. In aggregate, this allows the total sum of profits in the economy to increase (although it does not raise the average social rate of profit) and thus accommodates the system’s drive to accumulate.
In the process of achieving greater power over industrial capitalists due to the relationship of dependency on investment credit, the banking industry itself experiences tendencies to greater concentration. This occurs autonomously, because it is efficient to concentrate banking functions to realize economies of scale, particularly as regards international commercial credit. But more importantly, “the concentration of industry is the ultimate cause of concentration in the banking system” (1981, p.98).
In providing a greater volume and more sophisticated kinds of investment credit to ever more dependent capitalists, the banking industry tends to concentration because such credit is the “keystone for all other banking activities in industry, such as promotion and the flotation of shares, direct participation in industrial enterprises, participation in management through membership or the board or directors. In a large number of cases such activities are related to bank [investment] credit as effect to cause.” (1981, p.97)
Banks excel at these other functions when they have an inside operating knowledge of the capitalist concern, which is easily acquired through issuing and holding investment credit assets.
One ancillary function of banks which Hilferding examines more closely is that of share-issuance, a function captured in the investment banking (as distinguished from investment credit) role of banks, in joint-stock companies and the Stock Exchange itself. From a base of power that begins with dependence via capital credit, banks play a vital role in determining the nature and timing of transformation from individually-owned enterprise to joint-stock company (or corporation).
In Hilferding’s time, there were no regulations to prohibit commercial banks from engaging in brokering or issuing shares of stocks. The larger the bank, the more control over the process could be exerted:
“The large bank is able to choose the appropriate time for issuing shares, to prepare the stock market, thanks to the large capital at its command, and to control the price of shares after they have been issued, thus protecting the credit position of the enterprise. As industry develops, it makes increasing demands on the flotation services of the banks” (1981, p.97).
The power of banks relative to others involved in the joint-stock company can be traced to the actual earning mechanism of the new enterprise. The shareholder in a joint-stock company resembles more closely a money capitalist than an industrial capitalist, Hilferding argues, because through the stock market, the capital invested can be regained at any time: “Liquid money capital competes, as interest-bearing capital, for investment in shares, in the same way as it competes in its real function as loan capital for investment in fixed interest loans” (1981, p.109).
Shares are claims to future profits, realized by the sum of dividends and of the increase in value of the shares. Hilferding believed that the yield on such shares would be reduced to the level of the rate of interest in the long-term, as liquid money capital flowed freely, levelling the rate of return.
The issue unresolved in identifying joint-stock company capital as money capital is the category of entrepreneurial profit. Assuming the joint-stock company return to shareholders is equal to the rate of interest, this entrepreneurial profit can be described as the “profit rate minus the rate of interest.” Hilferding explained this category in terms of the difference between the total capital stock outstanding and the shares that were issued to represent, in a legal sense only, that capital.
Hilferding remarked that a doubling of capital seemed to occur during the transition to joint-stock company status, since the original capital stock was augmented by the capital raised in sales or shares. The capital extended received profit as its return; the share “is a claim to a part of the profit” (1981, p.110), and not to the actual capital stock invested in the enterprise.
But since the interest rate upon which fluctuations in share prices ultimately must rest is independent of the profit rate of any particular enterprise, it is “obvious that it is misleading to regard the price of a share as an aliquot part or industrial capital” (1981, p.111). Indeed, once the share was issued, “None of the developments or misfortunes which it may encounter in its circulation have any direct effect on the cycle of the productive capital” (1981, p.113).
Hence, in the transformation of profit-bearing capital stock to interest-bearing shares, the capital stock which received – in Hilferding’s example (1981, p.111) – a 15% profit rate became shares which received a 7% rate of return. The difference was explained by recalling that the shares represent a claim on the profit that accrues to the original capital stock. The original capital, in the meantime, has been augmented by proceeds from the sale of shares.
That ‘doubling’ mechanism thus made the original capital twice or more valuable than the shares it supposedly was represented by. Because of higher administrative costs associated with the joint-stock company form, the value was typically more than twice as great. This difference was a one-time only profit that Hilferding renamed ‘promoter’s profit’ (1981, p.112) and which accrued to the issuing bank.
By controlling much of the process or joint-stock company promotion, a bank could also affect the rate of return on shares by manipulating the value and amounts of preferred and common shares. This was done by allowing or encouraging stock watering or fraudulent activities, if business conditions made such avenues lucrative.
By watering down or manipulating the shares, “the amount of capital necessary to ensure control of a corporation is usually less than [half of the shares], amounting to a third or a quarter, or less” (1981, p.119). By spreading their resources widely, big capitalists could maintain and distribute control over numerous entities.
The joint-stock companies would also have greater ability to utilize bank credit than would individually-owned enterprises, mainly because bank familiarity with the joint-stock company – as well as internal divisions of labor in the bank and corporation – allowed for more effective supervision, and for the use of credit in an optimal way (i.e., with the possibility of use for more profitable functions – speculative in nature – than circulation or investment in new fixed capital) (1981, p.125). Hence the use of credit made the joint-stock company more competitive than the individually-owned enterprise that would typically not have such good access to credit.
Through manipulation of shares, through provision of credit and through interlocking board directorships, banking capitalists were on a par with leading industrial capitalists – Hilferding called this a ‘personal union’ (1981, p.119) – then banks could relatively easily insist that instead of obtaining new credit from them, joint-stock companies must instead acquire needed capital by issuing new shares, again to be accompanied by promoter’s profit.
In sum, to support the system or joint-stock companies, banks
“advance [the initial capital], divide the sum into parts, and then sell these parts [as shares] in order to recover the capital, thus performing a purely monetary transaction (M-M’). It is the transferability and negotiability or these capital certificates, constituting the very essence of the joint-stock company, which makes it possible for the bank to ‘promote,’ and finally gain control or, the corporation” (1981, p.120).
Of course, this was not done without some struggle by the corporations, first for self-determination, and second, for a share of the promoter’s profit.
One means of avoiding bank dominance was the stock exchange. As noted above, such a marketplace could support the circulation credit facilities of major industrial capitalists, although with far less efficiency and stability compared to the banks. Similarly, the issuance of securities could be carried out in the stock exchange, but again, with certain important disadvantages which allowed investment banks to gain the upper hand in competition.
According to Hilferding, the main role of the stock exchange was in speculation. Even for those outside the banking industry, the speculative drive could easily come under bank control.
In this sense of the word, speculation is merely taking advantage of fluctuations in share prices, and has nothing to do with realizing surplus value. Speculators thus do not gain from any outright expansion in the productive capacity represented in the stock exchange, but merely from gambling with one another. Speculators make decisions to buy or sell particular shares of companies based on the two aspects of share price, the level of profit and the rate of interest.
To assess the former, speculators have no inside edge compared to banks, for example. Assessing the latter, in Hilferding’s time, was a relatively uncontroversial task.
One constant feature of speculation in stock exchanges then and now, is that big shareholders manipulate the prices of shares simply in order to siphon off earnings from small shareholders, who are typically too uninformed to keep up with the latest maneuvers. Another aspect is the use of credit to ‘buy on the margin,’ allowing
“the speculator to take advantage even of minor price fluctuations, in so far as he can extend his operations far beyond the limits of his own resources, and thereby make a good profit through the scale of his transactions, despite the small extent or the fluctuations… futures trading, which defers the completion of all transactions to the same date, is the best way to take advantage of credit” (1981, p.145).
But banks have their own insights into this process, and when the time is right, they can withdraw lines of credit that their small and mid-sized speculative clients had become dependent upon, thus
“putting these clients ‘out of commission’, making it impossible for them to go on speculating, forcing them to unload their securities at any price, and by this sudden increase in supply depressing prices and enabling creditors to pick up these securities very cheaply” (1981, p.147).
Speculation in a commodity exchange has the important advantage of standardization. The use of a new investment vehicle, futures, “makes the commodity, for everyone, a pure embodiment of exchange value, a mere bearer of price… the buyer is spared the trouble of investigating their use value… ” (1981, p.153).
Banks also have some say in the stock exchange when it comes to larger speculators. In obtaining credit on a ‘contango basis’ – i.e., at times when the futures price of a commodity is higher than the current spot price – these speculators must temporarily consign to their creditor bank the shares of stock they use for collateral. At the time of shareholder meetings, this is particularly valuable to a bank. In addition, when doing contango business, “the banks can directly influence the rate of interest, because in this case the supply or credit is to an exceptional degree at the discretion of the banks” (1981, p.148).
And through their other relationships to corporations, banks can “carry on all their speculations with considerable security. The declining importance or the stock exchanges is obviously connected with this development or the large banks” (1981, p.149).
In trade-related speculation, the banks’ involvement reduces the return on commercial trading capital per unit, since with greater access to credit, a trader can spread his/her own resources over a larger volume of commodities. The commercial mark-up on these commodities need not be so high, allowing the ‘industrial profit’ on the commodities to increase.
Finally, speculation in commodity markets also assists productive capital, through lowering the circulation time of commodities and providing insurance against price fluctuations. In the process, part of the commercial profit is converted into interest, which goes to the banks.
The banks increase their earnings and general control over the economy in the commodity exchange. In order to stabilize the exchange from recessionary forces, banks use their power to encourage cartelization, according to Hilferding. This phenomenon is repeated in the realm of industrial production, as well. In order to understand the tendency to concentration – specifically, the development of monopolistic forms of corporate organization – Hilferding first outlines the competitive forces of capitalism that direct the equalization of the rate of profit. Obstacles to equalization arise, however, as capitalism develops.
To encourage new capital flows into spheres that are experiencing an above-average rate of profit, or to drain resources from spheres that are performing badly, are not easy tasks in highly-developed, large-scale areas of business, particularly in two areas: where there is a heavy build-up of fixed capital and where small capital operates individually-owned. Both sectors of production tend to become overcrowded and experience below-average rates of profit.
Hilferding notes that when certain firms in healthy industries win a competitive struggle and achieve consistently high profits, then banks – which have themselves become concentrated and have spread their interests over a large range of industrial enterprises – stand to lose their investments in the non-competitive firms and industries. “Hence the bank has an overriding interest in eliminating competition among the firms in which it participates” (1981, p.191). Banks, then, are an obstacle to free competition but support the tendency for the rate of profit to equalize.
The process of bank manipulation of industrial organization is straightforward. The unification of industrial enterprises can take various forms which lead to varying degrees of monopolization: vertical or horizontal integration, mergers, consortia, cartels, or trusts. When bank intervention occurs, the struggle for unification – often a competitive, hard-fought battle – takes on a new, almost preordained nature. When banks facilitate combinations between clients, “unnecessary waste and destruction of productive forces is avoided” (1981, p.199).
For the bank, a number of benefits accrue from facilitating industrial concentration, including greater security and the opportunity to engage in investment banking. While in these arranged marriages, ownership centralizes but does not necessarily concentrate per se (because the resulting enterprise is most likely to be shared by the owners or the premerger firms), production does concentrate, leaving Hilferding to remark that this is a “striking expression or the fact that the function of ownership has become increasingly separated from the function of production” (1981, p.198).
Another outcome of the process of concentration is the attempt of cartels and trusts to try to minimize ‘commerce’ retail trade, especially – so as to better control prices. In doing so, commercial profit as a share of the total profit on a sale of a commodity declines. The difference can be divided into the other component parts of profit: entrepreneurial profit, interest, and rent.
Hilferding asserts that the existence of the monopolistic combine “confirms Marx’s theory of concentration, [it] at the same time tends to undermine his theory of value” (1981, p.228). Price distortions develop that will reduce profits in the non-monopolized industries. Cartels specifically reduce the level of production to elicit greater marginal profits.
“Consequently,” Hilferding concludes, “while the volume of capital intended for accumulation increases rapidly, investment opportunities contract” (1981, p.235). One solution to this problem, which Hilferding touches on, is imperialism – understood as necessitated by the export of over-accumulated capital.
At some point, Hilferding notes, the ability to serve advanced cartels requires the amalgamation of banks. Banks must take greater pains to invest in industry rather than trade or speculation. Hilferding therefore calls
“bank capital, that is capital in money form which is actually transformed in this way into industrial capital, finance capital… An ever-increasing proportion of the capital used in industry is finance capital, capital at the disposition of banks which is used by the industrialists” (1981, p.225).
Thus, the banks which when acting as userers were resisted by productive capital, and as money-dealing capital merely accommodated the circulation needs of industrial capital, slowly gained power. They “become founders and eventually rulers of industry whose profits they seize for themselves as finance capital” (1981, p.226).
The amalgamation of banks, Hilferding argues, is consistent with the trend towards an “increasingly dense network of relations between the banks and industry… [which] would finally result in a single bank or a group of banks establishing control over the entire money capital. Such a ‘central bank’ would then exercise control over social production as a whole” (1981, p.180).
This is one of Hilferding’s most controversial predictions, and did not fare well historically. Grossman (1992, p.198), explained: “Hilferding needed this construction of a ‘central bank’ to ensure some painless, peaceful road to socialism, to his ‘regulated’ economy.”
And consistent with the trend toward parallel concentration of banks and industry, Hilferding believed, would be a general cartel: “a single body which would determine the volume of production in all branches of industry” (1981, p.235). Prices and money would no longer matter, and the only conflict would be over distribution.
Given these trends, Hilferding concluded that “a fully developed credit system is the antithesis of capitalism, and represents organization and control as opposed to anarchy” (1981, p.180). This prospect would not theoretically eliminate crises, however. With finance capital in a hegemonic role, economic downturns would develop in important new ways.
Hilferding began his discussion of crisis consistent with other themes, by emphasizing circulation. According to Hilferding, a likely manifestation of a crisis in capitalist production would be an interruption in the circulation process due to the hoarding of money, the result of which is an inability to purchase the next round of commodities.
If this was hoarding of money in its role as a means of circulation, i.e., if it only hindered the exchange process and left in its wake a temporary glut of commodities, avenues could be developed to surmount the problem. But the situation is more deeply affected when money has gone beyond a means of circulation to become a means of payment and credit.
When a temporary glut becomes a slump under conditions of credit-based production, it may be impossible for producers to meet their debt obligations. The problem expands, as “The chain of debtors resulting from the use of money as a means of payment is broken, and a slump at one point is transmitted to all the others, so becoming general” (1981, p.239).
Of course, crisis conditions, including the hoarding of money, emanate from contradictions in the production process. Since “Goods are produced in order to obtain a specific profit and to achieve a specific degree of valorizat1on or capital” (1981, p.240), the priorities of production drive consumption.
Hilterding thus eschewed a narrow perspective emphasizing underconsumption of commodities, in part because the logical solution would not in fact resolve the conditions of crisis: ‘‘under capitalist conditions expansion of consumption means a reduction in the rate of profit” (1981, p.242), because the rise in workers’ wages needed to fund consumption would come directly from surplus value extraction. In fact, he later argued, “A crisis could just as well be brought about by a too rapid expansion of consumption, or by a static or declining production of capital goods” (1981, p.256).
Hilferding considered two versions of why capitalist economies develop hoards, gluts of commodities, excessive inventories, overproduction, overaccumulation, or whatever term is preferred. The two versions are captured in the theories of ‘profit-squeeze’ versus ‘underconsumptionist’ tendencies to crisis: as consumption increases, profits are squeezed (because wages rise relative to surplus value extraction); or as profits increase, consumption drops more quickly below levels of production (as workers are unable to afford the goods they produce due to surplus value extraction).
Hilferding suggested that with these contradictory tendencies at work, crises in capitalism must be explained not from the standpoint of production and consumption, but instead in the realm or circulation by looking at ‘disproportionalities.’
As mentioned above, hoarding of money sets the stage for an interruption in circulation. Hoarding of money is a function of processes that are important in reproduction and balanced accumulation as opposed to production. Hilferding first mentioned the need that capitalists have to hoard in order to save to replenish fixed capital that is consumed in the production process. The fixed capital must be replenished in a manner consistent with the amount of circulating capital.
From Marx’s reproduction schema, it is necessary to faithfully recreate the ratio of means of production (Department I goods) to means of consumption (Department II goods) if growth is to be steady and positive. But in order to guarantee some consistency within ‘the anarchy of capitalism’ – e.g., to “safeguard against unpredictable consumer wants and constant fluctuations in demand” (1981, p.246) – some overproduction is necessary. A reserve supply or money and commodities must be hoarded.
Hilferding then described the role of hoarding in achieving an equilibrium in the accumulation process. Once surplus value has been realized in exchange – once the commodity has been sold for money – the capitalist temporarily hoarded that surplus value portion of the proceeds while contemplating which sector of production (Department 1 or Department II) would be most profitable for reinvestment.
Hilferding called these factors in the interruption of circulation ‘general conditions of crisis.’ An inexorable need to hoard to reproduce capital and to balance accumulation are features of “the dual existence of the commodity, as commodity and as money” (1981, p.239).
To arrive at the actual causes of crisis, he argued, required a sense of the basis for disproportional ties between production of Department I and Department II goods. That basis lay in the price structure which signalled investment opportunities, which Hildferding described in terms of the business cycle. At the beginning of the cycle, production expands with “the opening of new markets, the establishment of new branches of production, the introduction of new technology, and the expansion of needs resulting from population growth” (1981, p.258).
Perhaps the most important facet of the upsurge in business activity is the shortening of the turnover period of capital that accompanies technological progress. Profits rise, as do demand and hence prices, in a self-sustaining upward spiral. However, the system sows the seeds of its own destruction with the introduction of new technology, for the organic composition of capital increases, leaving in its wake an ever-smaller basis for expropriation of surplus value.
And, Hilferding recognised, even as technological progress allows inefficient fixed capital to be replaced with more efficient fixed capital, the turnover period of capital was lengthened by counteracting tendencies. As the business cycle progresses, one can observe increases in fixed capital relative to circulating capital, shortages in labor and other inputs, overutilization of constant capital leading to physical damage of the means of production, and the development of foreign markets. These factors raise the general turnover period of capital, leading to a declining rate of profit and eventual crisis.
Hilferding observed a problem in the short-term, however, with the rising organic composition of capital scenario. The problem, due again to a faulty price structure, results in new investments occurring in sectors that are particularly prone to the falling rate of profit tendency. Demand for products or heavy industrial sectors typically runs ahead of output, due to the fact that new investment of large amounts of fixed capital in these sectors takes time and is relatively inflexible.
With demand outstripping supply in the short-term, prices in heavy industrial sectors can increase at the same time organic composition does. This will signal, incorrectly, that more liquid capital should flow into these sectors. When the new investment in fixed capital in these sectors finally comes on line, supply suddenly increases dramatically, resulting in the disproportionalities which in Hilferding’s view were the more proximate ‘cause’ of overaccumulation and crisis.
In other sectors, especially those dependent on raw materials, similar processes of mismatching prices to opportunities for profit exist. ‘Convulsions’ in raw material supply follow the disequilibrium tendency of demand.
Violent price fluctuations and further inaccurate signals for new investment follow naturally. Reserve money supplies which might have corrected some of the imbalances are often countered by the money supplies that have been hoarded. Accumulation proceeds more rapidly than consumption, and disproportionalities develop throughout the system.
Ultimately, Hilferding believed, these factors produce “deviations of market prices from production prices, and hence disruptions in the regulation of production, which depends for its extent and direction upon the structure of prices” (1981, p.266). Bottlenecks, hoarding, slumps in sales, and crisis then logically follow.
Credit here becomes an especially interesting ingredient. On the one hand, credit could provide the means to rationalize production and level out the disproportionalities in pricing. However, upon closer examination, finance exacerbates underlying tendencies to crisis. Part of the reason for this can be traced to the dual nature of money as a means of circulation and as a measure of value, which permits the financial system to detach itself from its monetary base. This occurs both because of value changes in money itself – currency becomes unfixed from its gold value and because credit (centralized idle money) is created in a manner unrelated to the value of circulating commodities.
Certain mechanisms in the business cycle feed off the contradiction in the dual role of money. Hilferding argues that during the expansionary phase of the business cycle, both the system’s disproportionalities and the general turnover time of capital increase. To accommodate, more credit is needed. For example, disproportionalities produce gluts in the stocks of commodities in certain sectors, particularly those with rising prices and heavy fixed capital. A ready supply of bank credit to these favored sectors permits producers.to avoid equilibrating forces (production or price cuts) so that production levels will continue unhindered by the developing disproportionalities.
Also during the expansionary phase, as fixed capital increases relative to circulating capital, turnover time is extended. In the process, the velocity of the circulation of credit slows, requiring more credit for rollovers, extensions, and renewals. As delays hit one sector and affect payment schedules, they are transferred throughout the economy, requiring ever-increasing credit transactions.
Beyond this role of finance capital – i.e. in ameliorating certain mechanical problems when managing the growth of the capitalist system during the expansion – credit is also demanded in greater quantities for speculative purposes. As interest rates rise during the expansion, speculation in the stock exchange requires an ever-greater return, and hence more credit.
Share prices for joint-stock companies then increase, allowing banks more lucrative activity in the promotion of new enterprises. In the commodity exchange, greater demand for credit arises to facilitate the practice of withholding certain commodities from the market in order to artificially inflate their price.
At some point, interest rates are too high to permit profitable speculation, and as banks refuse to extend more credit, the stock exchange can experience a rapid crisis, characterized by an immediate downward spiral in share prices and investor confidence, and ultimately, significant declines in commodity prices.
While this has occurred primarily because of a turnaround in the money and credit markets, “it can well precede the onset of a general commercial and industrial crisis” (1981, p.271). Hilferding hastened to add, “Nonetheless, it is only a symptom, an omen, of the latter crisis, since the changes in the money market are indeed determined by the changes in production which lead to a crisis” (1981, p.271).
The crisis in the stock exchange is exacerbated by the strain on bank credit in production. As the crisis hits, goods which were financed with bank credit can no longer be paid for at prices high enough to cover interest payments. With falling prices, bank credit cannot be extended at this stage to cover unpaid bills. Defaults increasing, the credibility of the lending institutions comes into question. Runs on banks occur, and what David Harvey (1982) describes as the reversion of the financial system to its monetary base begins. The limited supply of circulating cash is then subject to hoarding, bid up in value beyond its intrinsic worth, and no longer tied even to its metallic base.
For Hilferding, the relationship of the monetary crisis to the crisis in production varies depending on several factors: the degree to which some banks’ credit positions remain unimpaired, the country’s gold balances, the role of the state, and the degree of concentration in the banking industry. He concludes ambiguously, by describing certain changes in the character of crises involving the role of banks that can help prevent both the monetary crisis and the crisis in production.
For example, the strength of a country’s gold stock can play an important role in managing an economic slide. A deteriorating balance of payments at the peak or expansion weakens the gold stock, since (in Hilferding’s day) “gold functions as world money for the settlement of international payments balances” (1981, p.275).
The balance of payments normally swings against economies that are peaking because rising domestic prices encourage imports and leave a weakened balance of trade. A country leading the boom is likely to have the highest interest rates, thus attracting foreign money and further weakening the balance of payments. Speculators finally sense the impending doom and flood the securities market with declining paper.
With gold flight a logical response to these trends, the domestic financial markets are seriously threatened. Conversely, a strong gold policy can ameliorate the conditions of crisis.
The role of the state in mediating the crisis is important in other respects. The most damaging yet widely-used tool of the state, Hilferding maintained, is limiting the extension of bank credit. Ideally, the adverse balance of trade experienced by the most advanced oapitalist countries during the peak of expansion should be matched by a favorable balance of payments.
The best mechanism for this is increased foreign lending. If the banking industry is highly concentrated, Hilferding argued, the risk associated with the conditions of crisis (speculation, default, monetary problems, etc.) can be more widely shared, because banks can spread their resources more widely through different sectors at different stages of capitalist development, and also because depositors are less able to find banks that are unaffected by the crisis.
The power of financiers vis-a-vis commerce and industry shifts, in the banks’ favor. By the time a banking crisis has arrived, “speculation, in both commodities and securities, has declined considerably in volume and importance” (1981, p.292). Thus, trends in finance capital might, in Hilferding’s view, actually prevent a monetary crisis from occurring.
Countervailing forces such as increasing exports, defaults on foreign debt, and an influx of gold during the crisis also help limit the damage. But a monetary crisis can, quite autonomously, push the productive sector into its own crisis.
During the crisis, both industrial and money capital sit idle and liquidity is high. As Hilferding put it, “Money does not circulate, or function as money capital, because industrial capital is not functioning” (1981, p.285). It is then in the depth of crisis that the financial system reverts to reflecting the conditions of value production from whence it began.
Hilferding ended his comments on crises by contemplating the Marxist proposition that they deepen and worsen over time. The possibility of crises emanating from the finance capital sector – with “large-scale bankruptcies, and from stock exchange, bank, credit, and money panics” (1981, p.294) – actually diminishes as finance capital develops, he posits, and the existence or commercial and industrial cartels allows conditions of crisis to be shuffled into non-cartelized industries.
As a result, he insisted, “The difference in the rate of profit between cartelized and non-cartelized industries, which on average is greater the stronger the cartel and the more secure its monopoly, diminishes during times of prosperity and increases during a depression” (1981, p.298).
The ability of monopolies to manipulate prices exacerbates the disproportionalities mentioned previously and prevents the restructuring necessary to end a depression. All of this works over time to further the process of concentration, Hilferding argued. If there is no monetary crash, finance capital, he seemed to suggest, may emerge from crises relatively unscathed, able to continue playing a hegemonic role in the economy.
Much of the preceding analysis of the relationship of financial phenomena to production, exchange, and distribution has stood the test of time. The power of Finance Capital is the classical-Marxist theoretical base from which the arguments emanate, and Hilferding’s analysis generally appears beyond reproach. Unfortunately, however, the climax to Finance Capital – the discussion of crises – is where contrary conclusions can and should be drawn, due to the contradictions not only within capitalism, but within Hilferding’s own understanding of capitalist dynamics.
There are other retrospective objections that should be mentioned: the failure to discuss consumer and government credit (then far less prevalent than today), the emphasis on power blocs, and the political lessons that Finance Capital teaches us. The most telling criticism may be derived from the role of financial institutions in major crises during the history of capitalism, both before and after the 1910 book. While Hilferding could draw on major financial meltdowns in the 1840s-50s and 1870s-90s, subsequent crises were more informative about capitalism’s dynamics.
The first, from 1929 until World War II, was marked by an explosion of speculation, mismanagement by the central bank, and the ultimate collapse of both the financial and the productive systems. The second, occurring in fits and starts since the 1970s, can also be characterized by speculative tendencies and the impending prospect of financial collapse at the same time numerous sectors in deindustrialized parts of the world economy have faced severe productive system decay.
These crises have not only persisted over the past half century – after a period of financial regulation stabilized the system from the 1940s-60s – but have become increasingly amplified. The early 1980s world recession was followed by the late 1980s financial meltdown in energy and U.S. Savings&Loan housing finance institutions, the mid- to late-1990s emerging market collapses, the early 2000s dot.com bubble bursting, the 2007-09 world financial meltdown catalyzed by a property crash but displaced through Quantitative Easing (QE) and the Chinese infrastructure boom, and the brief March-April 2020 crisis based on Covid-19 lockdowns that again were displaced by another bout of QE.
For Hilferding, these crises would offer surprises, for he suggested several factors in “militating against a banking crisis” (1981, p.291) that bear repeating: risk can be shared through the centralized financial and productive systems; the strong role of gold and oof other state policies could shore up the creditworthiness of the system; speculation would decline in volume and importance; and joint-stock company production could continue because it need not realize an immediate return.
Hence for Hilferding, it was “sheer dogmatism to oppose the banks’ penetration of industry… as a danger to the banks” (1981, p.293). Not only that, “As the power of banks continues to grow, it is the banks which dominate the movements of speculation, rather than being dominated by them” (1981, p.293).
These arguments, not unreasonable as hypotheses, are in fact untenable given the earlier analysis. There are at least seven reasons to judge Hilferding’s approach inadequate.
In sum, the arguments Hilferding made as to why and how crises can be avoided are all inconsistent with his earlier theory or with proven reality. One reason is that Hilferding neglected government and consumer credit. For Hilferding, credit was based upon the needs of firms either to rationalize a plethora of bills of exchange and promissory notes (circulating credit), or to raise funds for new investment (capital credit).
By neglecting state debt and consumer finance, Hilferding missed important features of modern capitalism. One is the ability of the system to raise the social wage of labor through debt, buying labor peace and giving weight to the notion of an advanced capitalist ‘labor aristocracy’. Another is the ability of the system to maintain effective demand, buying time and avoiding crises in ‘underconsumption’ but putting off until later the unavoidable need to repay the debt. In this sense, credit creation begins to simply resemble speculation: gambling that future income will permit the present rate of borrowing.
Earlier in Finance Capital, Hilferding had commented, “A bank crash results only from industrial overproduction or excessive speculation, and manifests itself as a scarcity or bank capital in money form, due to the fact that bank capital is tied up in a form which cannot be immediately realized as money” (1981, p.180). This is indeed the true nature of financial crises, and his later attempt to rationalize a stable banking system was unsuccessful.
In sum, nearly all of Hilferding’s previous analysis leads to the logical conclusion that, contrary to finance capital’s hegemony during a crisis, banks do indeed lose self-control, as well as control of outside entities and processes. Sweezy (1968, p.267) may have been correct in this respect when he commented, “Hilferding mistakes a transitional phase of capitalist development for a lasting trend.”
The transitional phase was one of recovery from the 1870s-1890s financial crises; these crises would emerge again in the early 1930s and again in recent decades. Part of the reason Hilferding erred in understanding financial crises was his overemphasis on bank control of corporations and hence the economy, and underemphasis on systemic vulnerability.
After all, during a crisis, banks are the first, not the last, to lose self-control and control of outside entities and processes. Yet Hilferding empowered banks in the finance capital era with tremendous influence, offering few caveats. This tended to give a conspiratorial air to finance capital, unnecessary given Hilferding’s rooting of its contradictions within the basic capitalist production process.
While there are certainly genuine capitalist power-blocs and institutional symbols of intra-capitalist cooperation in all economies, and while their role may at times be truly autonomous with strong feedback into the accumulation process, the experience of the 1930s confirms that banks are not permanently powerful, nor can finance capital be a permanent symbol of, the last phase of capitalist development.
A final criticism is that in analyzing class fractions, Hilferding was geographically simplistic, leading him to conclude that highly-liquid finance capital could always find harmony with relatively-fixed heavy industrial monopoly capital. In reality, when an international bank demands debt repayment from a poor country, it insists that the borrowing country shift its economic orientation to exports (for the sake of debt repayment).
This tendency towards the neoliberal economic policy favored by the financial industry occurs even when such exports might compete with the banks’ own hometown productive capitalists. The financing of U.S. deindustrialization by major northeastern U.S. banks, as productive capital shifted first to the U.S. South and then to Mexico and finally East Asia, is just one recent example of the contradictions associated with the financing of uneven and combined development.
What political strategy emerges from the previous analysis? Since finance capital has operated in a somewhat autonomous manner in recent years, and since a banking collapse will further the fractionalization of big capital, it may well be possible to view finance capital as an autonomous target and to consider serious prospects for taking power from a banking system weakened by crisis.
In sum, based on Hilferding’s analysis – rooting credit in money in commodity exchange, and adding the Ponzi nature of credit creation and speculation as the business cycle matures – it is quite obvious to conclude that the emergence and power of finance capital does indeed signal a new era of capitalism. But instead of a hegemonic finance capital fusion, the new era is one of periodic, worsening financial system fragility. That fragility logically leads to a crash, and that in turn finally devalorizes the overaccumulated financial capital, reestablishing the roles of money and credit within – not above and beyond – the process of value production.
But between a new start-up (where credit emanates from idle money and bills of exchange) and the next crash, finance capital can be said to operate autonomously, as if it had a life of its own. Finance capital gains and uses power in ways in which Hilferding documented and which are well known in subsequent times.
Financial institutions’ rising power allows credit and speculation to careen beyond bounds of rationality, and to funnel new investment off into the far corners of the globe, speeding the uneven development of capitalism at the same time competition is heightened and profits increasingly equalized. It is for these reasons that the first major step of any progressive movement upon taking state power should be to socialize control of finance capital. And it is likely that the only opportunity for such a step would be in the shambles following a crash.
Likewise, concluded Hilferding,
The response of the proletariat to the economic policy of finance capital – imperialism – cannot be free trade, but only socialism… The blatant seizure of the state by the capitalist class directly compels every proletarian to strive for the conquest of political power as the only means of putting an end to his own exploitation (1981, pp.366-370).
A version of this article was published in J.Dellheim and F.Wolf (Eds), Rudolf Hilferding: What do we still have to Learn from his Legacy? London: Palgrave Macmillan, 2020
Patrick Bond
is professor at the University of Johannesburg Department of Sociology, and co-editor of BRICS and Resistance in Africa (published by Zed Books, 2019).
The preeminence […]
European Central Bank China Crypto Assets Inflation Interest Rate Russia USAThe preeminence of British Banks such as Barings and Rothschild Maison de courtage and bankers that traces their profits making in the arm trade contingent of the mercantilist trade of the iberian colonialism in Latin America. The change of the world trade epicenter had provoked continual functional losses to such banking and monetary systems identified in the pretension of imperial domination and conquest.
These changes were promulgated first by the courtesans of the British Crown of Great Britain who promoted the Classical School of Economic thoughts that have addressed the value and the money with Adam Smith and David Ricardo which have prompted the response of Karl Marx, going through all the changes taking place in Europe giving their inter-bilateral wars and the rise of fierce competition to conquer colonies following the loss of the North Hemisphere by the British Crown.
New forms of exchange around the world was implemented in form of liberal trade and direct transfer of value through establishing direct line of exchange and transfer of values was accentuated in Latin America by the abolition of the slave trade and newly “emancipated slaves” transformed in wage-earners but more unemployed masses in the cities like in the “Fields of Nightmares”.
Territories and countries that have stayed out of the Capitalist Merchant system were confronted first by the liberalism and later by direct intervention of colonial companies chartered in London and other Financial European Places. External debt became the spear that transverse the shield of resisting countries to integrate the liberal flood. From India, Central Asia, China to North and South Africa and the Middle East with the “Sick Man of Europe” waves and storms invaded them and first hastened the rise of Communist Soviets and in two consecutive world wars and later breaking the Gold Exchange system and paving the path for the first clashes on money not on territories.
All this bring back to the time when John Maynard Keynes was addressing the issue of the money value during the Bretton-Woods and up to the monetarist of Friedman and the Economic School of Chicago and their Avatars as Technocratic-military-bureaucrats of Latin America, that was relayed by the Arab Boycott and the quadrupling of oil price followed by the waves of stagflation and we have seen how that to be the stimulant for imposing regimes that are supported on their ideological colors, Red you are, Red you will be marginalized and does not cross the line drawn in the sand. In face of that, we have “Pueblo Unido Jamas Sera Vencido” and “No Passaram.”
Populism, defense of the Western and Christian Values and Socio-fascism became the New Popular Formula feeded to the masses by regimes that have been collaborating with the new form of multinationalisation of capital and circulation of money.
Welcome:
TO THE NEW PLAY OF THE MISERABLES FACING INFLATION IN CALIFORNIA
They were waiting for the European Storm to pass over the World Economy and they held firm on the interest rates until the Fed and Ms. Lagarde decided that it is no longer possible just to have and be in the position of wait and see or waiting for Godot.
Unfortunately, the first increase by the Fed was a response to the financial plugging of the British economy but was confronted by the decision by the OPEC to reduce oil production, the decision by the Russian to accept only rubble as payment and the Chinese to make payment only with Yuan for all the external transactions. The conglomeration of all these geo-economic actions have made the dollar to be first higher than the Euro in the international market while it has also increase its vulnerability in front of the emerging markets while it has impacted more than 60% of the indebted countries that are on the verge of defaulting with Zambia, Sri Lanka and Ghana at the front line of complete default.
The recession was no longer at the edge of the Western economies, it was spreading beyond the surge of inflation of energy, commodities and the affordability of food staples by many countries.
Also, Japan has always played the role of antichambre and the echo room for the American economy since Reaganomics and Economic School of Chicago Boys.
An inflation that was stored as a vulcan once the dry land of all decisions taken by the financial and governing agencies in the western side of the story, the liberalism pursued burst in flames and lava covering the rest of the world economy and the price of energy product combined to the disruptive nature of all the diseases have flattened the path for the stagflation to elect domicile at the best of the best financial and economic houses that is the value of manufactured products, the value added to the primary goods by the international division of technological and logistic labor and the continual decrease of value of the commodities and primary goods coming from the south.
The subsequent division between nations has the same line that divided the Bourgeois City-dwellers and financiers and the peasant serfs sold with the land as part of the value of the land that depreciated considering the interests charged by the Bourg-banquiers to the owners of land far remained cloistered in what we called the Faux-Bourg, Faubourg at the periphery of the Center that is the City Market Place where the money circulation is the main frame of the commercial transactions while the Faubourg more is on the barter as method of trade which add more dependency on the Central Market of the Bourg-Merchants, these are the classes that were the primer investor in the next industrialization of the Bourg through first artisans and craftsman and guilds before becoming more separated of personnel skills and abilities and became the proper of productive mechanisms that made them to become the prolongation of massive mechanical productive system that take out the individual initiative or team of artisan collaboration.
Such separation and the abuse that resulted in making it to be accepted by these new class of workers who at this period of time they only have one thing which their Sabot – Wooden Shoe of the Countryside – to stop this ecrasement de leurs appropriation of their own labor force or product they are producing. They had to throw their wooden shoes – sabot in the machine so that they could have a break. A strategy that gave us the name of Sabotage, it was the age of Sabot in reverse of productive means and methods.
Diseases and decrease of agricultural productions added to the continual rural exodus has made the condition of the people who rely only on the force of the arms and hands to be begging for Bread:
TELL THEM NOT TO THROW THE CRUST OF THE CAKE LIKE THIS THEY Won’t be hungry anymore – Marie-Antoinette sentence distorted over time.
A long time ago, the USA and the Western World where we began to specialize in the Daily Manufacture of JEAN VALJEAN ET LES MISÉRABLES by our Great Victor Hugo, it was the period of “Huguenots = Huge money but you got not” to USA.
In the United States, California, we are manufacturing a New Robot from the Food Market and it is called:
new superhero named jean valjean resulting from the inflation and especially the price of the bread as it was during the time of the miserables
The Bread Ciabatta – Baguette – Batard named Bastar has the price between 5 dollars to 8 dollars, and guess what …
At wholesale, the price of 35 dozen of eggs is more than 100 dollars that means 1 egg is priced $2.8571
We invoke Hashem God and Allah when we are in trouble, I mean outside of trouble that despite having flour, water and salt and a hot oven, we cannot manage to dough and we lack wheat, Ukraine the Granier of the Liberal Western Empire and Africa , like use to be North Africa – called Mauretania the Granier of the Roman Empire.
Wheat scarcity has provoked so many changes in government and Empire and with Ukraine, is losing the transfer of Wheat to the rest of the World and with this Wheat it is impacting the circulation of money and the use of the Dollar for such commodities. So, well my brother, we haven’t come out of the mill yet and we’re cooked before we grind the dough in the mess despite all that we took Hashem, God and Allah, and this time in contradiction with our own wishes, to put ourselves in trouble to make bread, what new pain to wish oneself to be swallowed up in trouble and all this to refuel and monetize it in wheat, in the money of tomorrow, today, while waiting for Godot and being in trouble, we eat dry bread, French toast without eggs, and as they say, if you want to prepare an omelet to wet it and have them absorbed by the dry bread and fry them or instead of having kneaded bread in our mess, then we are obliged to make an omelet to break d are eggs
As you cannot be a Baker or like the former Prime Minister of France who was in trouble with all of France or like a Baker making balls in a bread kneader, then you can always try to be a cook
Also as they say: If you can’t stand the heat you get out of the kitchen and let the Palos make their own bread without messing or burning their ovens.
Hasta la Vista Hermano and Bon Appetit. This is not just boiling but burning Inflation
In Africa, we fill up the Aces and we go to starve our people to serve and feed their Gargantuan Croissant Appétit which has no limits
African States are feeding the Debtor and Starving for his own Appetite
in the productive, operational and logistical infrastructure and in the upstream supply chain for raw and peripheral materials and packaging at all stages of the transfer and exchange of goods and intermediate products from source to distribution and the direct and indirect sale of the final product.
This not to mention the interest rate of credits and loans as well as inflation for not only energy products but also and above all food products, dragging the recession behind with the bankruptcy and bankruptcy of countries such as
Let’s get back to our topic, the market in the USA as elsewhere is no longer slow and gentle, slowly and surely, just look at the millions of dollars that are wasted in Asset Currencies by novices, kids and “spoiled kids” and what I’ll call the Be Con being a Bicon impostor see my writings on this:
U.S. Finance Policy Facing High Tech Clouds
– Said … Continue reading U.S. Finance Policy Facing High Tech Clouds
Africa Reports International Affairs World Economy
U.S. Finance Policy Facing High Tech Clouds
They were waiting for the European Storm to pass over the World Economy and they held firm on the interest rates until the Fed and Ms. Lagarde decided that it is no longer possible just to have and be in the position of wait and see or waiting for Godot.
Unfortunately, the first increase by the Fed was a response to the financial plugging of the British economy but was confronted by the decision by the OPEC to reduce oil production, the decision by the Russian to accept only rubble as payment and the Chinese to make payment only with Yuan for all the external transactions. The conglomeration of all these geo-economic actions have made the dollar to be first higher than the Euro in the international market while it has also increase its vulnerability in front of the emerging markets while it has impacted more than 60% of the indebted countries that are on the verge of defaulting with Zambia, Sri Lanka and Ghana at the front line of complete default.
The recession was no longer at the edge of the Western economies, it was spreading beyond the surge of inflation of energy, commodities and the affordability of food staples by many countries.
Also, Japan has always played the role of antichambre and the echo room for the American economy since Reaganomics and Economic School of Chicago Boys.
12/17/2022
The American Way of Making Money to Fly while the Limit is the Sky
Re FTX and the Madoff analogy, here’s another one:
By 2008, accountants to #hedgefunds were turning a blind eye to questionable valuations of private assets. There was a whole category of funds that showed great results with virtually no volatility — returns smoothing at its finest. A #hedgefund specializing in, say, private lending could say, “hey, the accountants signed off on it.”
Madoff was a wake up call — in December 2008, accountants realized that they could face liability for misstated NAVs. So they turned the screws and soon some hedge funds were being forced to write down assets held at made up values.
Clearly, the accounting profession overall has kept distance from #crytpo, perhaps based on what they learned back then. But the article below in Bloomberg suggests that any firm active in the space will be doing a mad scramble to understand if the teams focused on this area followed reasonable professional standards or, as we keep hearing, were star struck and compromised. Those that find problems will prepare files to assist regulators to try to limit the reputational and financial damage.
“The United States is spending an additional fraction of its defense budget to pay US industry, which in turn is giving weapons to Ukraine as it dismantles the Russian threat to Europe.” Kurt Volker
Area of […]
Economics Finance and Investment Japan Policy Recommendations USAArea of Specialisation: : USA – Japan: Public Policy Advisor on Business and Investment
– Public Policy Advisor on Business and Investment Policies in the United States of America
– Priority
Description and Requirements of the Position:
○ Conduct research analysis about U.S. Trade, Investment and and Economic issues and Affairs developed, enacted and implemented in the United States and have implications for Japan.
○ To collect latest data on U.S. Trade, Investment and and Economic issues and Affairs related to Japan.
○ Update reports summarizing decisions taken by the United States Political and Governmental Institutions that are relevant and concerning the Japanese Interests and Concerns.
○ Research topics in the United States that are of interest to Japan and relevant to the regional, national and international concerns of Japan
○ Strong computer skills, including extensive experience with Microsoft Word, Power Point, and Excel, and ability to create website articles and presentations with Graphs and Charts,Strong computer skills, including extensive experience with Microsoft Word, Power Point, and Excel, and ability to create website articles
○ Flexibility and ingenuity.
○ Research topics in the United States that are of interest to Japan and relevant to the regional security and national interests of USA and Japan
Required Qualifications:
○ Proof of legal status to work in the U.S.
○ College degree in a related field
○ Native-level English ability
○ Strong understanding of US politics and economics, and U.S-Japan relations
○ Strong organizational and communication skills
○ Strong sense of teamwork and cooperation
○ Strong computer skills
○ Japanese language skills/fluency preferred but not required
_ This position is not News making or gathering, collecting published articles on the net. This position requires knowledge and intelligence about the USA – Japan relations making and progress by Analysts who are in contact with real facts and inside knowledge of the various players in the United States Public Policy decisions toward Japan.
To Apply
Applicants should email their resume and cover letter and copies of their publication related and focusing the requirements of this position.
Email: support@triconsultingkyoto.com
Please write on the Subject of the Email, the following indication of “Public Policy Advisor on Business and Investment”
Deadline for submission is February 21st, 2023 – 6:00pm (PST).
Please refrain from inquiring about your application status.
By Austin Dean […]
China Money USABy Austin Dean published originally at this link of the Ohio State University, Stanton Foundation
Editor’s Note
Many Americans, apparently, are really angry at China right now. They believe that China is taking advantage of the United States with unfair trade practices and by manipulating its currency. In fact, American politicians and bankers have been concerned with China’s currency for a very long time. This month historian Austin Dean traces this long history of American involvement in China’s monetary policies and shows that Americans have been more the manipulator than manipulated.
… of their products sold in foreign markets. Central banks in Japan, South Korea, and Taiwan had recently intervened in currency markets to control their currencies’ appreciation. The Bank of England, similarly, had encouraged the pound to fall since 2008. …
“China is killing us.” It is a favorite phrase of Donald Trump, the real estate mogul, turned reality television star, turned Republican nominee and now, President-elect of the United States. Chinese action to keep the value of its currency low, Trump insists, is “robbing Americans of billions of dollars of capital and millions of jobs.”
President Barak Obama and President Xi Jinping toast during a 2014 State Banquet in Beijing, China.
In most recent presidential election cycles, candidates take shots at the People’s Republic of China. Some single out human rights issues, others Chinese foreign policy, but the most common rhetorical barbs tie back to trade and currency.
This is not new.
Since the founding of the United States, merchants, government officials, economists and journalists pondered how to increase trade with the world’s most populous nation to benefit American economic growth. And they have often sought to create closer links between the American and Chinese monetary systems to help foster this trade.
Chinese officials in the 19th and 20th centuries at times resisted these American overtures and at times sought to draw the United States into supporting China’s currency and, in turn, its government.
After the death of Mao Zedong in 1976 and the start of Reform and Opening under Deng Xiaoping in the 1980s, trade between the United States and China increased dramatically. However, by end of the 20th century and into the early 2000s, the fixed exchange rate between the Chinese renminbi (the people’s currency, RMB) and the dollar became a source of tension between the two largest economies in the world as many in the U.S. Congress sought to label China a “currency manipulator.”
The currency question in U.S.-China trade relations has been around for more than 200 years. It will not be going away anytime soon.
The Early American Republic and the Qing dynasty
In 1783, the ship Empress of China left New York harbor and headed to Canton, the sole port open to foreign trade during the Qing dynasty. Founded in 1644, the Qing was the last imperial dynasty in Chinese history but, before its end, it became one of the largest and most prosperous empires in the world whose trade goods—teas, silks, porcelains—became valued all over the world. The newly independent United States wanted a part of this trade.
Backed by Robert Morris, financier of the American Revolution, the Empress of China departed the newly established United States with furs, ginseng, and other goods to trade in Canton. The ship also had something else in its cargo: more than 20,000 Spanish silver coins. The goods the Americans were bringing would not be enough to procure the products they hoped to buy. The traders had to settle the remaining balance with Spanish silver dollars.
From Mexico City to Manila, Spanish silver dollars flowed through the arteries of global commerce in the 18th and 19th centuries. In the United States, Alexander Hamilton used them as an important reference point for his “Report on the Coinage” that ultimately put the United States on a bimetallic monetary system. In fact, Spanish, and later Mexican, silver dollars were legal tender in the United States through the 1850s.
Silver peso of Philip V of Spain minted in Mexico in 1739 (left). 1888 “Trade Coins” from Mexico with multiple “chop” marks made by Chinese merchants to verify their authenticity (right).
Spanish silver was an important part of the Chinese monetary system. Deposits of the metal in China were not significant, so it came from abroad, first from Japan and then from the Americas. (Copper coins were generally used in local trade while silver was used in interregional and international trade.)
The Qing monetary system, from the perspective of the present, may appear cumbersome and complex. However, the intricacies of the Qing currency did not prevent the Empress of China from securing a large profit.
Chinese coins from the Tang to the Qing dynasties (618-1911).
Hearing the news, John Adams wrote to John Jay that “there is no better advice to give to the merchants of the U.S. than to push their commerce to the East Indies as fast and as far as it will go.” Merchants listened that advice and set sail to China.
Bound by Silver
Over the course of the 19th century, the Qing dynasty suffered from foreign wars and internal rebellions. After its Civil War, the United States took the first steps toward becoming an international economic power.
(Left) An 1898 French cartoon depicting England, Germany, Russia, France, and Japan dividing up China while a stereotypical Chinese official ineffectually tries to stop it. Largely predating American expansion efforts toward China, the U.S. was not included. (Right) The 1901 cover of Puck, a satirical magazine. Columbia, the personification of the United States, puts on a warship-shaped hat representing the United States’ grab for “World Power,” which would include more influence over Chinese trade.
Silver increasingly bound the two countries together: the United States became one of the chief producers of the metal after the discovery of the Comstock Lode in Nevada and the Qing was the most populous place that remained on the silver standard as many nations, including the United States, switched to gold.
After much discussion and controversy, the United States moved toward the gold standard in the 1870s. The Coinage Act of 1873 took away the legal tender quality of the one silver dollar coin that had been a part of Hamilton’s original legislation.
Soon thereafter, the Coinage Act of 1873 became known as the “Crime of 1873” for, its critics claimed, surreptitiously putting the United States on the gold standard. The bill ultimately framed American economic and political debates of the 1880s and 1890s as Williams Jennings Bryan and others lashed out against the gold standard.
But the Coinage Act of 1873 also did something else: it created a special coin, the U.S. Trade Dollar, to be used in commerce with China.
Previous U.S. silver dollar coins had not been welcomed by Chinese merchants, who still preferred Spanish or Mexican silver dollars.
With the Comstock Lode silver mines proving some of the richest deposits in the world, but with the United States heading toward the gold standard, the U.S. Trade Dollar was meant as an outlet for American silver. American politicians and traders hoped that the new coins would become Chinese merchants’ dollar of choice.
The Trade Dollar did find a few footholds in the south of China, where silver coins were commonly used, but the coin was “chopped” by Chinese merchants with stamps of small Chinese characters to attest that is was a real coin. American officials complained that these “chopmarks” defaced a beautiful coin. Other coins ended up in the melting pot as they were heavier, and thus contained more silver, than many of the other coins circulating at the time.
The creation of the Trade Dollar was the first attempt by Americans to influence China’s currency by creating a market for American silver. It was hardly America’s last foray into the Chinese currency system.
Imperialism and the Chinese Currency
At the end of the 19th century, the Qing dynasty suffered a number of blows.
Qing forces defeated by Japanese troops during the First Sino-Japanese War (1894-1895).
In 1895, Japan defeated the Qing in the first Sino-Japanese War. The Qing granted Japan a number of concessions and also had to pay a large indemnity. Several years later in 1900, during the Boxer Rebellion, a band of mystics tried to expel the foreign population from China but were ultimately defeated by an army composed of eight imperial powers. Afterward, foreign countries, including the United States, saddled the Qing with another huge indemnity.
In the first two decades of the 20th century, China became a center of great-power political competition as European countries, Japan, and the United States both cooperated and clashed over loaning money to the Qing and how China should reform its currency to facilitate trade.
As the Qing dynasty faltered, the United States issued the “Open Door” notes. The goal of the notes, issued by Secretary of State John Hay, was to maintain equal commercial opportunities for all nations in China. Hay hoped to prevent any imperial power from exercising exclusive power over the trade, politics and administration of China. However, the policy was aspirational and the United States lacked the means to enforce its vision.
One way the United States tried to realize the Open Door policy was through issuing loans to the Qing dynasty. In the first decade of the 20th century, the Qing borrowed a significant amount of money to pay off debts and for a series of modernization projects.
The Qing was a good borrower, not defaulting on any payments. Qing officials were also savvy, often playing bankers from different European countries against one another in order to secure better terms. European bankers were themselves no fools and soon formed a banking consortium so the Qing could no longer negotiate for better deals.
A political cartoon from 1913 in which Uncle Sam sits at a table with a Chinese official while representations of Great Britain, Mexico, and Japan look on. The sign in the background reads: “The New Diplomacy formerly dollar, now 30 [cents]” (left). William McKinley (right) ran for president in 1896 on the promise that adopting the gold standard would ensure U.S. prosperity.
The United States government wanted American bankers to join the international consortium. At the time, President William Howard Taft (1909-1913) pursued a policy of “dollar diplomacy,” which entailed diplomats and bankers working together to loan money to countries and projects in Latin America and Asia.
In 1910, a consortium of American banks led by J.P. Morgan agreed to loan money to the Qing for the development of Manchuria and to reform the Chinese currency system. For the Qing, the purpose of the loan was expressly political. The government sought to balance the growing Japanese presence in the northeast by drawing American economic and political interests into the area.
Soon after in 1910, a consortium of English, French, German, and American banks signed a contract with the Qing for Manchurian development and currency reform, a short time before the fall of the Qing dynasty in 1912.
That year was also a significant one in American politics as Woodrow Wilson became president. Upon taking office he recognized the fledging Chinese republic under the Hawaii-educated Sun Yat-sen and looked forward to the flowering of democracy in China. Wilson went even further and withdrew the United States from the international banking consortium it had only recently joined.
A poster commemorating the Republic of China, Yuan Shikai (left), and Sun Yat-sen (right).
The political and economic situation in China was precarious. Yuan Shikai, a key military figure under the Qing, seized power from Sun who ultimately fled to Japan to regroup. Yuan, helped by a loan from the international banking consortium, consolidated power in the period before World War I.
The outbreak of World War I changed the contours of East Asian politics. Japan entered the conflict on the side of the allies and seized German islands in the Pacific Ocean as well as the German treaty port of Qingdao on China’s Shandong peninsula.
The Japanese government soon sent Yuan Shikai a document known as The Twenty-One Demands that, taken together, would give Japan unprecedented control over the political, economic and military affairs of China. Yuan played for time, hoped for an American intervention that did not come, signed some of the demands and relied on leaking the contents to create international objections in order to stave off the worst clauses.
While most of the world focused on the conflict in Europe, Japan sought to take advantage of the increasingly unsettled situation in China. Yuan’s acolytes and associates then vied for power. Japan again tried to take advantage of the situation, arranging for merchant and middleman Nishihara Kamezo to seal a number of loan agreements with the nominally national government under one of Yuan Shikai’s associates.
One of these loans related to currency reform and specified that the Chinese currency would be linked to the Japanese yen in an emerging currency bloc.
This step roused objections from the United States. In 1917, the American minister in Beijing cited America’s “long-standing interest” in the question of currency reform in China and protested the recent loan agreement.
He was not the only one.
The Chinese populace protested against the terms of a number of the Nishihara loans. At the same time, American diplomats and bankers maneuvered to reenter and reform the international baking consortium it had left at the beginning of the first Wilson administration.
As world leaders met at Versailles to usher in a new world order after the First World War, bankers labored over an agreement to reform the international banking consortium.
After the Treaty of Versailles, China continued to fracture. Though there was a nominally national government in Beijing, a number of warlords held power in different regions of the country.
Chinese students protesting the Treaty of Versailles in 1919.
Sun Yat-sen, returned to China and his political party, the Nationalist Kuomintang (KMT), had a foothold in the far south. The Chinese Communist Party (CCP)—formed in 1921—was still a small organization. Sun, thinking the two groups had similar short-term interests, formed an alliance, though he died soon thereafter.
By the late 1920s, the KMT, then under the control of Chiang Kai-shek, marched north hoping to unify the country and end the rule of various warlords. Chiang, suspicious of the CCP and its revolutionary doctrine, also used the march to purge communists from the ranks of the KMT. The CCP fled to the countryside and the Nationalist party consolidated power, established its capital in Nanjing, and embarked on what became known as the Nanjing Decade, 1927-1937.
At the time the KMT consolidated power in the late 1920s, China was still on the silver standard monetary system. From the late 19th century through the 1920s, the price of silver continually declined as most countries adopted some form of the gold standard. Though the price of the metal rose briefly during World War I, it sank throughout the 1920s.
This trend made Chinese exports cheaper and conversely raised the price of imports from abroad. As the Great Depression spread across the world in the late 1920s and early 1930s, China initially avoided the worst of its effects, in part because its silver-based currency floated in relation to the currencies of nations on the gold standard.
However, certain American politicians had a different idea about the role of silver in China. Efforts on the part of the United States to manipulate Chinese currency took new, more urgent directions.
The Great Depression and World War II
Key Pittman, a senator from the key silver-producing state of Nevada, explained the Great Depression this way: Because the price of silver was so low, Chinese could not afford to import goods from abroad, particularly from the United States. The drop in the price of silver led to a glut of products that might have been sold to Chinese consumers and a slowing of commerce.
He believed that if the U.S. government took action to raise the price of silver by buying it at above-market prices, the average Chinese consumer would be able to afford the products of the world and slow economic conditions would end.
As Pittman explained in a letter to an acquaintance in the early 1930s, “If silver is stabilized at a reasonable value to satisfy the Oriental, then he will part with his silver and business will go on. If, however, the stabilized value is too low a figure, his silver will remain where it is and there will be no trade developed.”
Pittman’s explanation for the Great Depression centered on silver prices and China. His proposal, he argued, would benefit China, the world economy, and, conveniently, silver producers in his home state.
Many in China objected to Pittman’s argument. They believed that an artificial increase in the price of silver would have disastrous consequences. Silver would become more valuable as bullion on the international market than as coin in China. Under these conditions, silver would leave China. Since silver was money in China less of it would lead to deflation, exactly what China had avoided in the initial years of the Great Depression during the late 1920s and early 1930s.
Chinese protests and lobbying efforts did not prevent Congress from passing the Silver Purchase Act of June 1934. Under the Act, the Treasury Department would purchase silver until its price on the world market reached a certain level. The idea, as Pittman explained it, was to stimulate a rise in the metal’s price that would increase the purchasing power of the world, particularly of Chinese consumers. Secretary Henry Morgenthau pledged to carry out the policy and began buying silver at above-market prices later that summer.
Predictably, silver soon began to flow out of China.
By October, the Chinese minister of finance, Kong Xiangxi, a graduate of Oberlin College, asked Morgenthau to curtail the silver-buying program.
Arthur Young, one of Kong’s American advisors, surmised that the Chinese government only had a few options going forward: it could put a tax on the export of silver, which might ease things in the short term but which would undoubtedly encourage smuggling. Or, it could undertake a longer-term change to its monetary system.
In 1935, Morgenthau continued with purchases of silver and Chinese officials plotted their next move.
In November 1935, the Chinese government announced the end of the silver standard and the start of the fabi, a legal tender currency issued by the government, which promised to maintain exchange rates with the American dollar and British pound at certain levels. Everyone in China had to turn in silver for the new notes.
However, a significant problem haunted the new currency system. Most of the Chinese reserves were denominated in silver, not dollars or pounds. Now that the Chinese government had control of the nation’s silver, it sought to sell the metal for foreign currency. The Chinese minister of finance soon dispatched Chen Guangfu, a banker and University of Pennsylvania graduate, on a round-the-world trip to Washington.
The Americans did not quite know what to make of the new Chinese currency. Was it linked to the British pound or the U.S. dollar? If it was indeed linked to the British pound, Morgenthau surely could not assist the Chinese by purchasing silver. The optics would be awful. Likewise, Pittman and the silver bloc wanted to ensure that there would be at least some market for silver in China.
After several weeks of negotiations in spring 1936, Morgenthau and Chen reached an agreement concerning continued American purchases of silver. As Morgenthau told Chen, with America the largest buyer of silver and China the largest seller, the two of them could put the metal’s price anywhere they wanted.
During the next two years, the new fabi maintained its value and the move off silver went much better than many foreign and Chinese observers expected. But the Japanese invasion of China in 1937 irrevocably changed that.
As the Japanese Imperial Army swept across north and east China in 1937 and 1938, Chiang Kai-shek and the KMT government retreated deeper into the center of the country, eventually establishing a base in mountainous Chongqing. Japan set up a number of banks in areas under its control that issued their own currency and tried to undermine the value, reputation, and prestige of the fabi.
The Japanese invasion was a currency war as well as a military one.
The value of the fabi eroded, first gradually, and then precipitously. The KMT financed growing budget deficits through the printing press, which, the story goes, worked without interruption, needing a continuous supply of paper and ink to churn out notes. Inflation soared; it took bricks of cash to buy basic items; and uncertainty and discontent increased. After the United States entered the conflict, more financial aid arrived but the Chinese insisted it was not enough.
After the end of World War II, the conflict between the KMT and CCP resumed. The KMT tried one last effort at currency reform in 1948 but it was not successful. Deteriorating economic conditions and a series of CCP military victories made the KMT position in the mainland untenable. It soon fled to Taiwan.
The CCP announced the founding of the People’s Republic of China on October 1, 1949. In the United States, many spoke of the “Loss of China.” If only the United States had done more to support Chiang Kai-Shek and the KMT, the thinking went, the communists would have never gained power.
The People’s Republic of China and the Renminbi
The new Chinese Communist Party faced myriad challenges after the start of the PRC. Currency reform was just one of them. In the late 1940s a number of different notes circulated. The People’s Bank of China began issuing the renminbi, the people’s currency, in 1948 in the the territories under its control.
Starting in 1948, the renminbi, known as the people’s currency, featured images of peasant farmers and industrial workers. From left to right: 1 Yuan Note, 5 Yuan Note, and 200 Yuan Note.
At the time, the People’s Republic of China deliberately overvalued the renminbi and put strict controls on its convertibility: it was not easy to change renminbi for American dollars or British pounds. The purpose of overvaluing the renminbi was to make it less costly to import foreign machinery to be used to produce for the domestic market.
The PRC traded with a number of countries, just not with the United States. The currency question, uncharacteristically in the history of Sino-U.S. relations, was a dormant issue, but not for long.
After President Richard Nixon’s trip to China in 1971, the death of Mao Zedong in 1976, and the economic policies of Deng Xiaoping in the late 1970s and 1980s, relations between the United States and the People’s Republic of China resumed and trade between the two countries picked up.
President Richard Nixon and Premier Zhou Enlai toasting during Nixon’s historic visit in 1972.
Starting from the 1980s, the value of the renminbi declined in order to promote Chinese exports. In 1980, one American dollar could only buy about 1.5 Chinese yuan (yuan is a denomination of renminbi) but by the mid-1990s the same American dollar could buy around 8 Chinese yuan.
From the late 1990s to the mid-2000s, the People’s Bank of China maintained the value of the renminbi at a peg to the dollar. At the same time, China accumulated a growing current account surplus—it exported significantly more than it imported. Under these circumstances and over time the value of renminbi should rise. However, because the People’s Bank of China maintained the currency peg, it did not.
Because of this, in the early and mid-2000s a number of American politicians and economists sought to label China a “currency manipulator” and try to force appreciation rise in the value of the renminbi.
Democratic Senator Charles Schumer of New York (left) and Republican Senator Lindsey Graham of South Carolina (right).
The issue brought together unlikely political allies. In the U.S. Senate, Charles Schumer (D-NY) and Lindsey Graham (R-SC) repeatedly sponsored bills and lobbied the Treasury Department, the organization in charge of making the final decision, to pressure the Chinese currency.
In 2005, the People’s Bank of China allowed the RMB to appreciate slightly. But this change should not be totally attributed to American pressures. Plenty of figures within China disagree about how to handle the value of the RMB.
China faces what economists call the “trilemma.” In making monetary policy, a country cannot have everything it wants. It has to make choices. It cannot have a fixed foreign exchange rate, control over its own monetary policy, and free movement of capital. For example, the United States sets its own monetary policy and allows for the free movement of capital—investors can move dollars in or out of the U.S as they please—but the value of the dollar in terms of other currencies moves around.
The headquarters of the People’s Bank of China in Beijing.
Different parts of the Chinese government and the Communist Party disagree about what path to pursue. If the People’s Bank of China allows the value of the renminbi to float and capital to flow in and out of China freely, that means the CCP would lose a great deal of control over the economy, something many in the party and state are likely unwilling to give up.
If it chooses the other route and tries to keep the exchange rate that moves only within a very small margin, it must maintain capital controls—limiting the amount of money people can move out or move into the country. At the moment individual Chinese citizens are only allowed to trade RMB for dollars up to the amount of $50,000 each year, though there are a number of ways to skirt this requirement and there is evidence that Chinese are moving large sums out of the country.
Age of Uncertainty
Throughout the 2016 presidential campaign, President-elect Donald Trump accused China of manipulating its currency by keeping it too low. Yet in reality, in the face of a dramatic economic slowdown, the People’s Bank of China has recently intervened to keep the value of the renminbi artificially high.
There are a number of reasons behind this shift in economic conditions: the sense that the export-led growth model of the past 30 years is coming to an end, a declining number of viable investment opportunities, pessimism about the debt levels in China and a desire to diversify into assets outside the country.
The much-heralded Chinese currency reserves declined as people traded their RMB for dollars. Since the Chinese government promises to keep the renminbi at a certain level it has to use its dollar reserves to maintain that level. If, instead, it let the value of renminbi float on the open market, it would likely be lower than it is today.
The U.S.’s top trade partners in 2011.
In the immediate aftermath of Trump’s election, uncertainty and volatility around the world shot up and a number of markets went down: the value of the Mexican peso, for instance, was decimated. After one of the most stunning political feats in American history, commentators are rightly hesitant to make any prognostications, but here is a conservative one: the currency question in U.S.-China relations will soon reemerge.
For more than 200 years, American merchants, Qing dynasty officials, Communist party cadres, and American politicians pondered how to manage the trade and currency relations between the two countries. These debates spanned the era of Spanish silver dollars, the gold standard, the Great Depression, World War II, and the Reform and Opening of China under Deng Xiaoping.
In past election cycles it was common for candidates to bash China during the election before changing their rhetoric when confronted with the complex, shifting and multifaceted nature of U.S.-China relations. Author James Mann calls this process the “about face.” For the past 25 years, the “about face” of those presidential candidates who later became presidents became predictable and expected.
The reliable “about face,” like so much else in the world, is now shrouded in uncertainty.
Read more on Asia from Origins: The China Dream; China and Africa; Remembering Tiananmen; Hong Kong; Taiwan’s Politics; The Chinese Cultural Revolution; The Philippines and Pacific Geopolitics; Japanese Nuclear Power; Singapore at 50; and North Korea.
October, 2016
Suggested Reading
Bell, Stephen Bell and Hui Feng. The Rise of the People’s Bank of China: The Politics of Institutional Change. Cambridge: Harvard University Press, 2013.
Donlin, Eric. When America Met China: An Exotic History of Tea, Drugs, and Money in the Age of Sail. New York: Liveright, 2013
Kroeber, Arthur. China’s Economy: What Everyone Needs to Know. Oxford: Oxford University Press, 2016.
Mann, James. About Face: A History of America’s Curious Relationship with China, from Nixon to Clinton. New York: Vintage Books, 2000.
Rosenberg, Emily. Financial Missionaries to the World: The Politics and Culture of Dollar Diplomacy, 1900-1930. Durham: Duke University Press, 2004.
Young, Arthur. China’s Wartime Finance and Inflation, 1937-1945. Cambridge: Harvard University Press, 1965.
Young, Arthur. China’s Nation-Building Effort, 1927-1937: The Financial and Economic Record. Palo Alto: Hoover Institute Press, 1971.
Morocco’s Early […]
Diplomacy Morocco US-Morocco Trade Relation USAMorocco’s Early Recognition of American Independence in 1778
If we trace the date when Morocco contacted in Europe Franklin we will see that Morocco is the earliest recognition of American independence in 1778 to add a cheerful cherry which is the first Real Estate bought by the United States Government out of the US continental territory was a House in Tangier in that served as the US Legation in Morocco, this House is still owned by the US Government and was transformed in House of America – Dar America – Museum while the US Embassy is in Rabat and the General Consulate in Casablanca with “Play Again Sam” Tune in the Air and the Spirit.
Another fact of rapprochement, is that Roosevelt meet with the King while the French Protectorate was at its’s height of control on Morocco. During this meeting, Roosevelt promised that Morocco will be independant following the defeat of Hitler and Moroccan will be participating in this battle as they did in the First World War. My Grand Father was in the First World War and my Uncles were in the Second World War.
Treaty of Peace and Friendship, with additional article; also Ship-Signals Agreement. The treaty was sealed at Morocco with the seal of the Emperor of Morocco June 23, 1786 (25 Shaban, A. H. 1200), and delivered to Thomas Barclay, American Agent, June 28, 1786 (1 Ramadan, A. H. 1200). Original in Arabic.The additional article was signed and sealed at Morocco on behalf of Morocco July 15, 1786 (18 Ramadan, A. H. 1200). Original in Arabic. The Ship-Signals Agreement was signed at Morocco July 6, 1786 (9 Ramadan, A. H. 1200). Original in English.
Certified English translations of the treaty and of the additional article were incorporated in a document signed and sealed by the Ministers Plenipotentiary of the United States, Thomas Jefferson at Paris January 1, 1787, and John Adams at London January 25, 1787.
Treaty and additional article ratified by the United States July 18, 1787. As to the ratification generally, see the notes. Treaty and additional article proclaimed July 18, 1787.
Ship-Signals Agreement not specifically included in the ratification and not proclaimed; but copies ordered by Congress July 23, 1787, to be sent to the Executives of the States (Secret Journals of Congress, IV, 869; but see the notes as to this reference).[Certified Translation of the Treaty and of the Additional Article, with Approval by Jefferson and Adams)
To all Persons to whom these Presents shall come or be made known- Whereas the United States of America in Congress assembled by their Commission bearing date the twelfth day of May One thousand Seven hundred and Eighty four thought proper to constitute John Adams, Benjamin Franklin and Thomas Jefferson their Ministers Plenipotentiary, giving to them or a Majority of them full Powers to confer, treat & negotiate with the Ambassador, Minister or Commissioner of His Majesty the Emperor of Morocco concerning a Treaty of Amity and Commerce, to make & receive propositions for such Treaty and to conclude and sign the same, transmitting it to the United States in Congress assembled for their final Ratification, And by one other (commission bearing date the Eleventh day of March One thousand Seven hundred & Eighty five did further empower the said Ministers Plenipotentiary or a majority of them, by writing under the* hands and Seals to appoint such Agent in the said Business as they might think proper with Authority under the directions and Instructions of the said Ministers to commence & prosecute the said Negotiations & Conferences for the said Treaty provided that the said Treaty should be signed by the said Ministers: And Whereas, We the said John Adams & Thomas Jefferson two of the said Ministers Plenipotentiary (the said Benjamin Franklin being absent) by writing under the Hand and Seal of the said John Adams at London October the fifth, One thousand Seven hundred and Eighty five, & of the said Thomas Jefferson at Paris October the Eleventh of the same Year, did appoint Thomas Barclay, Agent in the Business aforesaid, giving him the Powers therein, which by the said second Commission we were authorized to give, and the said Thomas Barclay in pursuance thereof, hath arranged Articles for a Treaty of Amity and Commerce between the United States of America and His Majesty the Emperor of Morocco, which Articles written in the Arabic Language, confirmed by His said Majesty the Emperor of Morocco & seal’d with His Royal Seal, being translated into the Language of the said United States of America, together with the Attestations thereto annexed are in the following Words, To Wit.
In the name of Almighty God,
This is a Treaty of Peace and Friendship established between us and the United States of America, which is confirmed, and which we have ordered to be written in this Book and sealed with our Royal Seal at our Court of Morocco on the twenty fifth day of the blessed Month of Shaban, in the Year One thousand two hundred, trusting in God it will remain permanent.
1. We declare that both Parties have agreed that this Treaty consisting of twenty five Articles shall be inserted in this Book and delivered to the Honorable Thomas Barclay, the Agent of the United States now at our Court, with whose Approbation it has been made and who is duly authorized on their Part, to treat with us concerning all the Matters contained therein.
2. If either of the Parties shall be at War with any Nation whatever, the other Party shall not take a Commission from the Enemy nor fight under their Colors.
3. If either of the Parties shall be at War with any Nation whatever and take a Prize belonging to that Nation, and there shall be found on board Subjects or Effects belonging to either of the Parties, the Subjects shall be set at Liberty and the Effects returned to the Owners. And if any Goods belonging to any Nation, with whom either of the Parties shall be at War, shall be loaded on Vessels belonging to the other Party, they shall pass free and unmolested without any attempt being made to take or detain them.
4. A Signal or Pass shall be given to all Vessels belonging to both Parties, by which they are to be known when they meet at Sea, and if the Commander of a Ship of War of either Party shall have other Ships under his Convoy, the Declaration of the Commander shall alone be sufficient to exempt any of them from examination.
5. If either of the Parties shall be at War, and shall meet a Vessel at Sea, belonging to the other, it is agreed that if an examination is to be made, it shall be done by sending a Boat with two or three Men only, and if any Gun shall be Bred and injury done without Reason, the offending Party shall make good all damages.
6. If any Moor shall bring Citizens of the United States or their Effects to His Majesty, the Citizens shall immediately be set at Liberty and the Effects restored, and in like Manner, if any Moor not a Subject of these Dominions shall make Prize of any of the Citizens of America or their Effects and bring them into any of the Ports of His Majesty, they shall be immediately released, as they will then be considered as under His Majesty’s Protection.
7. If any Vessel of either Party shall put into a Port of the other and have occasion for Provisions or other Supplies, they shall be furnished without any interruption or molestation.
If any Vessel of the United States shall meet with a Disaster at Sea and put into one of our Ports to repair, she shall be at Liberty to land and reload her cargo, without paying any Duty whatever.
8. If any Vessel of the United States shall be cast on Shore on any Part of our Coasts, she shall remain at the disposition of the Owners and no one shall attempt going near her without their Approbation, as she is then considered particularly under our Protection; and if any Vessel of the United States shall be forced to put into our Ports, by Stress of weather or otherwise, she shall not be compelled to land her Cargo, but shall remain in tranquillity untill the Commander shall think proper to proceed on his Voyage.
9. If any Vessel of either of the Parties shall have an engagement with a Vessel belonging to any of the Christian Powers within gunshot of the Forts of the other, the Vessel so engaged shall be defended and protected as much as possible untill she is in safety; And if any American Vessel shall be cast on shore on the Coast of Wadnoon (1) or any coast thereabout, the People belonging to her shall be protected, and assisted untill by the help of God, they shall be sent to their Country.
10. If we shall be at War with any Christian Power and any of our Vessels sail from the Ports of the United States, no Vessel belonging to the enemy shall follow untill twenty four hours after the Departure of our Vessels; and the same Regulation shall be observed towards the American Vessels sailing from our Ports.-be their enemies Moors or Christians.
11. If any Ship of War belonging to the United States shall put into any of our Ports, she shall not be examined on any Pretence whatever, even though she should have fugitive Slaves on Board, nor shall the Governor or Commander of the Place compel them to be brought on Shore on any pretext, nor require any payment for them.
12. If a Ship of War of either Party shall put into a Port of the other and salute, it shall be returned from the Fort, with an equal Number of Guns, not with more or less.
13. The Commerce with the United States shall be on the same footing as is the Commerce with Spain or as that with the most favored Nation for the time being and their Citizens shall be respected and esteemed and have full Liberty to pass and repass our Country and Sea Ports whenever they please without interruption.
14. Merchants of both Countries shall employ only such interpreters, & such other Persons to assist them in their Business, as they shall think proper. No Commander of a Vessel shall transport his Cargo on board another Vessel, he shall not be detained in Port, longer than he may think proper, and all persons employed in loading or unloading Goods or in any other Labor whatever, shall be paid at the Customary rates, not more and not less.
15. In case of a War between the Parties, the Prisoners are not to be made Slaves, but to be exchanged one for another, Captain for Captain, Officer for Officer and one private Man for another; and if there shall prove a deficiency on either side, it shall be made up by the payment of one hundred Mexican Dollars for each Person wanting; And it is agreed that all Prisoners shall be exchanged in twelve Months from the Time of their being taken, and that this exchange may be effected by a Merchant or any other Person authorized by either of the Parties.
16. Merchants shall not be compelled to buy or Sell any kind of Goods but such as they shall think proper; and may buy and sell all sorts of Merchandise but such as are prohibited to the other Christian Nations.
17. All goods shall be weighed and examined before they are sent on board, and to avoid all detention of Vessels, no examination shall afterwards be made, unless it shall first be proved, that contraband Goods have been sent on board, in which Case the Persons who took the contraband Goods on board shall be punished according to the Usage and Custom of the Country and no other Person whatever shall be injured, nor shall the Ship or Cargo incur any Penalty or damage whatever.
18. No vessel shall be detained in Port on any presence whatever, nor be obliged to take on board any Article without the consent of the Commander, who shall be at full Liberty to agree for the Freight of any Goods he takes on board.
19. If any of the Citizens of the United States, or any Persons under their Protection, shall have any disputes with each other, the Consul shall decide between the Parties and whenever the Consul shall require any Aid or Assistance from our Government to enforce his decisions it shall be immediately granted to him.
20. If a Citizen of the United States should kill or wound a Moor, or on the contrary if a Moor shall kill or wound a Citizen of the United States, the Law of the Country shall take place and equal Justice shall be rendered, the Consul assisting at the Tryal, and if any Delinquent shall make his escape, the Consul shall not be answerable for him in any manner whatever.
21. If an American Citizen shall die in our Country and no Will shall appear, the Consul shall take possession of his Effects, and if there shall be no Consul, the Effects shall be deposited in the hands of some Person worthy of Trust, untill the Party shall appear who has a Right to demand them, but if the Heir to the Person deceased be present, the Property shall be delivered to him without interruption; and if a Will shall appear, the Property shall descend agreeable to that Will, as soon as the Consul shall declare the Validity thereof.
22. The Consuls of the United States of America shall reside in any Sea Port of our Dominions that they shall think proper; And they shall be respected and enjoy all the Privileges which the Consuls of any other Nation enjoy, and if any of the Citizens of the United States shall contract any Debts or engagements, the Consul shall not be in any Manner accountable for them, unless he shall have given a Promise in writing for the payment or fulfilling thereof, without which promise in Writing no Application to him for any redress shall be made.
23. If any differences shall arise by either Party infringing on any of the Articles of this Treaty, Peace and Harmony shall remain notwithstanding in the fullest force, untill a friendly Application shall be made for an Arrangement, and untill that Application shall be rejected, no appeal shall be made to Arms. And if a War shall break out between the Parties, Nine Months shall be granted to all the Subjects of both Parties, to dispose of their Effects and retire with their Property. And it is further declared that whatever indulgences in Trade or otherwise shall be granted to any of the Christian Powers, the Citizens of the United States shall be equally entitled to them.
24. This Treaty shall continue in full Force, with the help of God for Fifty Years.
We have delivered this Book into the Hands of the before-mentioned Thomas Barclay on the first day of the blessed Month of Ramadan, in the Year One thousand two hundred.
I certify that the annex’d is a true Copy of the Translation made by Issac Cardoza Nunez, Interpreter at Morocco, of the treaty between the Emperor of Morocco and the United States of America.
Treaty of Peace and Friendship in Arabic
Morocco is one of the first countries to recognize the independence of the United States as the Sultan Sidi Mohammed Ben Abdullah issued a declaration in 1777 allowing American ships access to Moroccan ports. In 1787 a Treaty of peace and friendship was signed in Marrakech and ratified in 1836. It is still in force making it the longest unbroken treaty in the U.S history.
The U.S had also its first consulate in Tangier in 1797 in a building given by the sultan Moulay Sliman. It is the oldest U.S diplomatic property in the world.
Below is the Treaty called the “Marrakech Treaty” in its original form as was written in 1786.
“This is a Treaty of Peace and Friendship established between Morocco and the United States of America, which is confirmed, and which we have ordered to be written in this Book and sealed with our Royal Seal at our Court of Morocco on the twenty fifth day of the blessed Month of Shaban, in the Year One thousand two hundred, trusting in God it will remain permanent” The Sultan Mohammed Ben Abdullah.
2. If one of the Parties shall be at War with any Nation whatsoever, the other Party shall not take a Commission either from the Enemy nor fight under their Colors.
3. If either of the Parties shall be at War with any Nation whatever and take a Prize belonging to that Nation, and there shall be found on board Subjects or Effects belonging to of the Parties, the Subjects shall be set at Liberty and the Effects returned to the Owners. In addition, if any Goods belonging to any Nation, with whom either of the Parties shall be at War, shall be loaded on Vessels belonging to the other Party, they shall pass free and unmolested without any attempt being made to take or detain them.The United States of America was never Christian Nation- Here is my legal Proof.
One of the hard facts of life is that the United States of America is not a Christian Nation. The following Treaty was made by the United States of America with the Barbary Pirates. It passed the 5th Congress without a hitch. Article 11 was made part of the record to convince the Muslims that the United States of America is not a Christian Nation, and therefore peace could be established between the two nations.TREATIES AND OTHER
INTERNATIONAL AGREEMENTS
OF THE
UNITED STATES OF AMERICA
1776-1949
Compiled under the direction of
CHARLES I. BEVANS, LL.B.
Assistant Legal Adviser, Department of State
Volume II
PHILIPPINES-
UNITED ARAB REPUBLIC
DEPARTMENT OF STATE PUBLICATION 8728
Released February 1974
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington D.C. 20402 – Price $14.35
pages 1070 – 1074
Tripoli
PEACE AND FRIENDSHIP
Treaty signed at Tripoli November 4, 1796, and at Algiers January 3, 1797
Senate advice and consent to ratification June 7, 1797
Ratified by the President of the United States June 10, 1797
Entered into force June 10, 1797
Proclaimed by the President of the United States June 10, 1797
Superseded April 17, 1806, by treaty of June, 4, 18051
8 Stat. 154; Treaty Series 3582[TRANSLATION of 1796]3
TREATY OF PEACE AND FRIENDSHIP BETWEEN THE UNITED STATES OF AMERICA AND THE BEY AND SUBJECTS OF TRIPOLI OF BARBARY
ARTICLE 1
There is a firm and perpetual Peace and friendship between the United States of America and the Bey and subjects of Tripoli of Barbary, made by the free consent of both parties, and guaranteed by the most potent Dey & regency of Algiers.
ARTICLE 2
If any goods belonging to any nation with which either of the parties is at war shall be loaded on board of vessels belonging to the other party they shall pass free, and no attempt shall be made to take or detain them.
ARTICLE 3
If any citizens, subjects or effects belonging to either party shall be found on board a prize vessel taken from an enemy by the other party, such citizens or subjects shall be set at liberty, and the effects restored to the owners.
ARTICLE 4
Proper passports are to be given to all vessels of both parties, by which they are to be known. And, considering the distance between the two countries, eighteen months from the date of this treaty shall be allowed for procuring such passports. During this interval the other papers belonging to such vessels shall be sufficient for their protection.
ARTICLE 5
A citizen or subject of either party having bought a prize vessel condemned by the other party or by any other nation, the certificate of condemnation and bill of sale shall be a sufficient passport for such vessel for one year; this being a reasonable time for her to procure a proper passport.
ARTICLE 6
Vessels of either party putting into the ports of the other and having need of provisions or other supplies, they shall be furnished at the market price. And if any such vessel shall so put in from a disaster at sea and have occasion to repair, she shall be at liberty to land and reembark her cargo without paying any duties. But in no case shall she be compelled to land her cargo.
ARTICLE 7
Should a vessel of either party be cast on the shore of the other, all proper assistance shall be given to her and her people; no pillage shall be allowed; the property shall remain at the disposition of the owners, and the crew protected and succoured till they can be sent to their country.
ARTICLE 8
If a vessel of either party should be attacked by an enemy within gun-shot of the forts of the other she shall be defended as much as possible. If she be in port she shall not be seized or attacked when it is in the power of the other party to protect her. And when she proceeds to sea no enemy shall be allowed to pursue her from the same port within twenty four hours after her departure.
ARTICLE 9
The commerce between the United States and Tripoli, – the protection to be given to merchants, masters of vessels and seamen, – the reciprocal right of establishing consuls in each country, and the privileges, immunities and jurisdictions to be enjoyed by such consuls, are declared to be on the same footing with those of the most favoured nations respectively.
ARTICLE 10
The money and presents demanded by the Bey of Tripoli as a full and satisfactory consideration on his part and on the part of his subjects for this treaty of perpetual peace and friendship are acknowledged to have been received by him previous to his signing the same, according to a receipt which is hereto annexed, except such part as is promised on the part of the United States to be delivered and paid by them on the arrival of their Consul in Tripoli, of which part a note is likewise hereto annexed. And no pretence of any periodical tribute or farther payment is ever to be made by either party.
ARTICLE 11
As the government of the United States of America is not in any sense founded on the Christian Religion,4 – as it has in itself no character of enmity against the laws, religion or tranquility of Musselmen, – and as the said States never have entered into any war or act of hostility against any Mehomitan nation, it is declared by the parties that no pretext arising from religious opinions shall ever produce an interruption of the harmony existing between the two countries.
ARTICLE 12
In case of any dispute arising from a violation of any of the articles of this treaty no appeal shall be made to arms, nor shall war be declared on any pretext whatever. But if the Consul residing at the place where the dispute shall happen shall not be able to settle the same, an amicable reference shall be made to the mutual friend of the parties, the Dey of Algiers, the parties hereby engaging to abide by his decision. And he by virtue of his signature to this treaty engages for himself and successors to declare the justice of the case according to the true interpretation of the treaty, and to use all the means in his power to enforce the observance of the same.
Signed and sealed at Tripoli of Barbary the 3d day of Jumad in the year of the Higera 1211 – corresponding with the 4th day of Novr 1796 by
JUSSUF BASHAW MAHOMET Bey SOLIMAN Kaya
MAMET – Treasurer GALIL – Genl of the Troops
AMET – Minister of Marine MAHOMET – Comt of the city
AMET – Chamberlain MAMET – Secretary
ALLY – Chief of the Divan
Signed and sealed at Algiers the 4th day of Argib 1211 – corresponding with the 3d day of January 1797 by HASSAN BASHAW Dey
and by the Agent plenipotentiary of the United States of America JOEL BARLOW [SEAL]
[THE “RECEIPT”]
Praise be to God & c-
The present writing done by our hand and delivered to the American Captain OBrien makes known that he has delivered to us forty thousand Spanish dollars, – thirteen watches of gold, silver & pins-back, – five rings, of which three of diamonds, one of saphire and one with a watch in it, – one hundred & forty piques of cloth, and four caftans of brocade, – and these on account of the peace concluded with the Americans.
Given at Tripoli in Barbary the 20th day of Jumad 1211, corresponding with the 21st day of Novr 1796 –
JUSSUF BASHAW – Bey
whom God Exalt
The foregoing is a true copy of the receipt given by Jussuf Bashaw – Bey of Tripoli –
HASSAN BASHAW – Dey of Algiers
The foregoing is a literal translation of the writing in Arabic on the opposite page
JOEL BARLOW[THE “NOTE”]
On the arrival of a consul of the United States in Tripoli he is to deliver to Jussuf Bashaw Bey –
twelve thousand Spanish dollars
five hawsers – 8 Inch
three cables – 10 Inch
twenty five barrels tar
twenty five do pitch
ten do rosin
five hundred pine boards
five hundred oak do
ten masts (without any measure mentioned, suppose for vessels from 2 to 300 ton)
twelve yards
fifty bolts canvas
four anchors
And these when delivered are to be in full of all demands on his part or on that of his successors from the United States according as it is expressed in the tenth article of the following treaty. And no farther demand of tributes, presents or payments shall ever be made.
Translated from the Arabic on the opposite page, which is signed & sealed by Hassan Bashaw Dey of Algiers – the 4th day of Argib 1211 – or the 3d day of Jany 1797 – by –
JOEL BARLOW[APPROVAL OF U.S. MINISTER AT LISBON]
To all to whom these Presents shall come or be made known.
Whereas the Underwritten David Humphreys hath been duly appointed Commissioner Plenipotentiary by Letters Patent, under the Signature of the President and Seal of the United States of America, dated the 30th of March 1795, for negociating and concluding a Treaty of Peace with the Most Illustrious the Bashaw, Lords and Governors of the City & Kingdom of Tripoli; whereas by a Writing under his Hand and Seal dated the 10th of February 1796, he did (in conformity to the authority committed to me therefor) constitute and appoint Joel Barlow and Joseph Donaldson Junior Agents jointly and seperately in the business aforesaid; whereas the annexed Treaty of Peace and Friendship was agreed upon, signed and sealed at Tripoli of Barbary on the 4th of November 1796, in virtue of the Powers aforesaid and guaranteed by the Most potent Dey and Regency of Algiers; and whereas the same was certified at Algiers on the 3d of January 1797, with the Signature and Seal of Hassan Bashaw Dey, and of Joel Barlow one of the Agents aforesaid, in the absence of the other.
Now Know ye, that I David Humphreys Commissioner Plenipotentiary aforesaid, do approve and conclude the said Treaty, and every article and clause therein contained, reserving the same nevertheless for the final Ratification of the President of the United States of America, by and with the advice and consent of the Senate of the said United States.
In testimony whereof I have signed the same with my Name and Seal, at the City of Lisbon this 10th of February 1797.
DAVID HUMPHREYS [SEAL] [United States Minister at Lisbon]
1 TS 359, post, p. 1081.
2 For a detailed study of this treaty, see 2 Miller 349.
3 This translation from the Arabic by Joel Barlow, Consul General at Algiers, has been printed in all official and unofficial treaty collections since it first appeared in 1797 in the Session Laws of the Fifth Congress, first session. In a “Note Regarding the Barlow Translation” Hunter Miller stated: “. . . Most extraordinary (and wholly unexplained) is the fact that Article 11 of the Barlow translation, with its famous phrase, ‘the government of the United States of America is not in any sense founded on the Christian Religion.’ does not exist at all. There is no Article 11. The Arabic text which is between Articles 10 and 12 is in form a letter, crude and flamboyant and withal quite unimportant, from the Dey of Algiers to the Pasha of Tripoli. How that script came to be written and to be regarded, as in the Barlow translation, as Article 11 of the treaty as there written, is a mystery and seemingly must remain so. Nothing in the diplomatic correspondence of the time throws any light whatever on the point.” (2 Miller 384.)
The Miller edition also contains an annotated translation from the original Arabic made in 1930 by Dr. C. Snouck Hurgronje of Leiden; for text, see p. 1075.
4 See footnote 3, p. 1070.
MANY OF YOU NEVER KNOWN THE RELATIONSHIP WITH THE MOORISH EMPIRE. THE SCHOOLS and ISLAMIC MOVEMENTS HAVE KEPT THIS A SECRET.
Office of the Historian – U.S. Department of State
Morocco and the United States have a long history of friendly relations. This North African nation was one of the first states to seek diplomatic relations with America. In 1777, Sultan Sidi Muhammad Ben Abdullah, the most progressive of the Barbary leaders who ruled Morocco from 1757 to 1790, announced his desire for friendship with the United States. The Sultan’s overture was part of a new policy he was implementing as a result of his recognition of the need to establish peaceful relations with the Christian powers and his desire to establish trade as a basic source of revenue. Faced with serious economic and political difficulties, he was searching for a new method of governing which required changes in his economy. Instead of relying on a standing professional army to collect taxes and enforce his authority, he wanted to establish state-controlled maritime trade as a new, more reliable, and regular source of income which would free him from dependency on the services of the standing army. The opening of his ports to America and other states was part of that new policy.
The Sultan issued a declaration on December 20, 1777, announcing that all vessels sailing under the American flag could freely enter Moroccan ports. The Sultan stated that orders had been given to his corsairs to let the ship “des Americains” and those of other European states with which Morocco had no treaties-Russia Malta, Sardinia, Prussia, Naples, Hungary, Leghorn, Genoa, and Germany-pass freely into Moroccan ports. There they could “take refreshments” and provisions and enjoy the same privileges as other nations that had treaties with Morocco. This action, under the diplomatic practice of Morocco at the end of the 18th century, put the United States on an equal footing with all other nations with which the Sultan had treaties. By issuing this declaration, Morocco became one of the first states to acknowledge publicly the independence of the American Republic.
On February 2O, l778, the sultan of Morocco reissued his December 20, 1777, declaration. American officials, however, only belatedly learned of the Sultan’s full intentions. Nearly identical to the first, the February 20 declaration was again sent to all consuls and merchants in the ports of Tangier, Sale, and Mogador informing them the Sultan had opened his ports to Americans and nine other European States. Information about the Sultan’s desire for friendly relations with the United States first reached Benjamin Franklin, one of the American commissioners in Paris, sometime in late April or early May 1778 from Etienne d’Audibert Caille, a French merchant of Sale. Appointed by the Sultan to serve as Consul for all the nations unrepresented in Morocco, Caille wrote on behalf of the Sultan to Franklin from Cadiz on April 14, 1778, offering to negotiate a treaty between Morocco and the United States on the same terms the Sultan had negotiated with other powers. When he did not receive a reply, Caille wrote Franklin a second letter sometime later that year or in early 1779. When Franklin wrote to the committee on Foreign Affairs in May 1779, he reported he had received two letters from a Frenchman who “offered to act as our Minister with the Emperor” and informed the American commissioner that “His Imperial Majesty wondered why we had never sent to thank him for being the first power on this side of the Atlantic that had acknowledged our independence and opened his ports to us.” Franklin, who did not mention the dates of Caille’s letters or when he had received them, added that he had ignored these letters because the French advised him that Caille was reputed to be untrustworthy. Franklin stated that the French King was willing to use his good offices with the Sultan whenever Congress desired a treaty and concluded, “whenever a treaty with the Emperor is intended, I suppose some of our naval stores will be an acceptable present and the expectation of continued supplies of such stores a powerful motive for entering into and continuing a friendship.”
Since the Sultan received no acknowledgement of his good will gestures by the fall of 1 779, he made another attempt to contact the new American government. Under instructions from the Moroccan ruler, Caille wrote a letter to Congress in September 1779 in care of Franklin in Paris to announce his appointment as Consul and the Sultan’s desire to be at peace with the United States. The Sultan, he reiterated, wished to conclude a treaty “similar to those Which the principal maritime powers have with him.” Americans were invited to “come and traffic freely in these ports in like manner as they formerly did under the English flag.” Caille also wrote to John Jay, the American representative at Madrid, on April 21,1780, asking for help in conveying the Sultan’s message to Congress and enclosing a copy of Caille’s commission from the Sultan to act as Consul for all nations that had none in Morocco, as well as a copy of the February 20, 1778, declaration. Jay received that letter with enclosures in May 1780, but because it was not deemed to be of great importance, he did not forward it and its enclosures to Congress until November 30, 1 780.
Before Jay’s letter with the enclosures from Caille reached Congress, Samuel Huntington, President of Congress, made the first official response to the Moroccan overtures in a letter of November 28,1780, to Franklin. Huntington wrote that Congress had received a letter from Caille, and asked Franklin to reply. Assure him, wrote Huntington, “in the name of Congress and in terms most respectful to the Emperor that we entertain a sincere disposition to cultivate the most perfect friendship with him, and are desirous to enter into a treaty of commerce with him; and that we shall embrace a favorable opportunity to announce our wishes in form.”
The U.S. Government sent its first official communication to the Sultan of Morocco in December 1780. It read:
We the Congress of the 13 United States of North America, have been informed of your Majesty’s favorable regard to the interests of the people we represent, which has been communicated by Monsieur Etienne d’Audibert Caille of Sale, Consul of Foreign nations unrepresented in your Majesty’s states. We assure you of our earnest desire to cultivate a sincere and firm peace and friendship with your Majesty and to make it lasting to all posterity. Should any of the subjects of our states come within the ports of your Majesty’s territories, we flatter ourselves they will receive the benefit of your protection and benevolence. You may assure yourself of every protection and assistance to your subjects from the people of these states whenever and wherever they may have it in their power. We pray your Majesty may enjoy long life and uninterrupted prosperity.
No action was taken either by Congress or the Sultan for over 2 years. The Americans, preoccupied with the war against Great Britain, directed their diplomacy at securing arms, money, military support, and recognition from France, Spain, and the Netherlands and eventually sought peace with England. Moreover, Sultan Sidi Muhammad and more pressing concerns and focused on his relations with the European powers, especially Spain and Britain over the question of Gibraltar. From 1778 to 1782, the Moroccan leader also turned to domestic difficulties resulting from drought and famine, and unpopular food tax, food shortages and inflation of food prices, trade problems, and a disgruntled military.
The American commissioners in Paris, John Adams, Jay, and Franklin urged Congress in September 1783 to take some action in negotiating a treaty with Morocco. “The Emperor of Morocco has manifested a very friendly disposition towards us,” they wrote. “He expects and is reading to receive a Minister from us; and as he may be succeeded by a prince differently disposed, a treaty with him may be of importance. Our trade to the Mediterranean will not be inconsiderable, and the friendship of Morocco, Algiers, Tunis, and Tripoli may become very interesting in case the Russians should succeed in their endeavors to navigate freely into it by Constantinople.”
Congress finally acted in the spring of 1784. On May 7, Congress authorized its Ministers in Paris, Franklin, Jay, and Adams, to conclude treaties of amity and commerce with Russia, Austria, Prussia, Denmark, Saxony, Hamburg, great Britain, Spain, Portugal, Genoa, Tuscany, Rome, Naples, Venice, Sardinia, and the Ottoman Porte as well as the Barbary States of Morocco, Algiers, Tunis, and Tripoli. The treaties with the Barbary States were to be in force for 10 years or longer. The commissioners were instructed to inform the Sultan of Morocco of the “great satisfaction which Congress feels from the amicable disposition he has shown towards these states.” They were asked to state that “the occupations of the war and distance of our situation have prevented our meeting his friendship so early as we wished.” A few days later, commissions were given to the three men to negotiate the treaties.
Continued delays by American officials exasperated the sultan and prompted him to take more drastic action to gain their attention. On October 11,1784, the Moroccans captured the American merchant ship, Betsey. After the ship and crew were taken to Tangier, he announced that he would release the men, ship, and cargo once a treaty with the United States was concluded. Accordingly, preparation for negotiations with Morocco began in 1785. On March 1 Congress authorized the commissioners to delegate to some suitable agent the authority to negotiate treaties with the Barbary States. The agent was required to follow the commissioners’ instructions and to submit the negotiated treaty to them for approval. Congress also empowered the commissioners to spend a maximum of 80,000 dollars to conclude treaties with these states. Franklin left Paris on July 12, 1785, to return to the United States, 3 days after the Sultan released the Betsey and its crew. Thomas Jefferson became Minister to France and thereafter negotiations were conducted by Adams in London and Jefferson in Paris. On October 11, 1785, the commissioners appointed Thomas Barclay, American Consul in Paris, to negotiate a treaty with Morocco on the basis of a draft treaty drawn up by the commissioners. That same day the commissioners appointed Thomas Lamb as special agent to negotiate a treaty with Algiers. Barclay was given a maximum of 20,000 dollars for the treaty and instructed to gather information concerning the commerce, ports, naval and land forces, languages, religion, and government as well as evidence of Europeans attempting to obstruct American negotiations with the Barbary States.
Barclay left Paris on January 15, 1 786, and after several stops, including 21/2 months in Madrid, arrived in Marrakech on June 19. While the French offered some moral support to the United States in their negotiations with Morocco, it was the Spanish government that furnished substantial backing in the form of letters from the Spanish King and Prime Minister to the Sultan of Morocco. After a cordial welcome, Barclay conducted the treaty negotiations in two audiences with Sidi Muhammad and Tahir Fannish, a leading Moroccan diplomat from a Morisco family in Sale who headed the negotiations. The earlier proposals drawn up by the American commissioners in Paris became the basis for the treaty. While the Emperor opposed several articles, the final form contained in substance all that the Americans requested. When asked about tribute, Barclay stated that he “had to offer to His Majesty the friendship of the United States and to receive his in return, to form a treaty with him on liberal and equal terms. But if any engagements for future presents or tributes were necessary, I must return without any treaty.” The Moroccan leader accepted Barclay’s declaration that the United States would offer friendship but no tribute for the treaty, and the question of presents or tribute was not raised again. Barclay accepted no favor except the ruler’s promise to send letters to Constantinople, Tunisia, Tripoli, and Algiers recommending they conclude treaties with the United States.
Barclay and the Moroccans quickly reached agreement on the Treaty of Friendship and Amity. Also called the Treaty of Marrakech, it was sealed by the Emperor on June 23 and delivered to Barclay to sign on June 28. In addition, a separate ship seals agreement, providing for the identification at sea of American and Moroccan vessels, was signed at Marrakech on July 6,1786. Binding for 50 years, the Treaty was signed by Thomas Jefferson at Paris on January 1, 1787, and John Adams at London on January 25, 1787, and was ratified by Congress on July 18, 1787. The negotiation of this treaty marked the beginning of diplomatic relations between the two countries and it was the first treaty between any Arab, Muslim, or African State and the United States.
Congress found the treaty with Morocco highly satisfactory and passed a note of thanks to Barclay and to Spain for help in the negotiations. Barclay had reported fully on the amicable negotiations and written that the king of Morocco had “acted in a manner most gracious and condescending, and I really believe the Americans possess as much of his respect and regard as does any Christian nation whatsoever.” Barclay portrayed the King as “a just man, according to this idea of justice, of great personal courage, liberal to a degree, a lover of his people, stern” and “rigid in distributing justice.” The Sultan sent a friendly letter to the President of Congress with the treaty and included another from the Moorish minister, Sidi Fennish, which was highly complimentary of Barclay.
The United States established a consulate in Morocco in 1797. President Washington had requested funds for this post in a message to Congress on March 2, 1795, and James Simpson, the U.S. Consul at Gibraltar who was appointed to this post, took up residence in Tangier 2 years later. Sultan Sidi Muhammad’s successor, Sultan Moulay Soliman, had recommended to Simpson the establishment of a consulate because he believed it would provide greater protection for American vessels. In 1821, the Moroccan leader gave the United States one of the most beautiful buildings in Tangier for its consular representative. This building served as the seat of the principal U.S. representative to Morocco until 1956 and is the oldest piece of property owned by the United States abroad.
U. S.-Moroccan relations from 1777 to 1787 reflected the international and economic concerns of these two states in the late 18th century. The American leaders and the Sultan signed the 1786 treaty, largely for economic reasons, but also realized that a peaceful relationship would aid them in their relations with other powers. The persistent friendliness of Sultan Sidi Muhammad to the young republic, in spite of the fact that his overtures were initially ignored, was the most important factor in the establishment of this relationship.
THIS IS LEGAL RECORD FOR YOU TO KNOW THAT EVEN THE DEY DECLARED WAR WITH THE UNION. AS C.M. Bey says, Here is my legal proof.
CONGRESSIONAL RECORD—HOUSE January 24, 1996
the problem he noted: Considering that Congress alone is constitutionally invested with the power of changing our condition from peace to war, I have thought it my duty to await their authority for using force in any degree which could be avoided.
1 Richardson 377. Military conflicts in the Mediterranean continued after Jefferson left office. The Dey of Algiers made war against U.S. citizens trading in that region and kept some in captivity. With the conclusion of the War of 1812 with England, President Madison recommended to Congress in 1815 that it declare war on Algiers: I recommend to Congress the expediency of an act declaring the existence of a state of war between the United States and the Dey and Regency of Algiers, and of such provisions as may be requisite for a vigorous prosecution of it to a successful issue.
2 Richardson 539. Instead of a declaration of war, Congress passed legislation for the protection of the commerce of the United States against the Algerine cruisers. The first line of the statute read: Whereas the Dey of Algiers, on the coast of Barbary, has commenced a predatory warfare against the United States. . . . Congress gave Madison authority to use armed vessels for the purpose of protecting the commerce of U.S. seamen on the Atlantic, the Mediterranean, and adjoining seas. U.S. vessels (both governmental and private) could subdue, seize, and make prize of all vessels, goods and effects of or belonging to the Dey of Algiers. 3 Stat. 230 (1815). An American flotilla set sail for Algiers, where it captured two of the Dey’s ships and forced him to stop the piracy, release all captives, and renounce the practice of annual tribute payments. Similar treaties were obtained from Tunis and Tripoli. By the end of 1815, Madison could report to Congress on the successful termination of the war with Algiers.
LEGISLATIVE CONTROLS ON PROSPECTIVE ACTIONS
Can Congress only authorize and declare war, or may it also establish limits on prospective presidential actions? The statutes authorizing President Washington to protect the inhabitants of the frontiers from hostile incursions of the Indians were interpreted by the Washington administration as authority for defensive, not offensive, actions.
1 Stat. 96, § 5 (1789); 1 Stat. 121, § 16 (1790); 1 Stat. 222 (1791). Secretary of War Henry Knox wrote to Governor Blount on October 9, 1792: The Congress which possess the powers of declaring War will assemble on the 5th of next Month Until their judgments shall be made known it seems essential to confine all your operations to defensive measures. 4 The Territorial Papers of the United States 196 (Clarence Edwin Carter ed. 1936). President Washington consistently held to this policy. Writing in 1793, he said that any offensive operations against the Creek Nation must await congressional action:
The Constitution vests the power of declaring war with Congress; therefore no offensive expedition of importance can be undertaken until after they have deliberated upon the subject, and authorized such a measure. 33 The Writings of George Washington 73. The statute in 1792, upon which President Washington relied for his actions in the Whiskey Rebellion, conditioned the use of military force by the President upon an unusual judicial check. The legislation said that whenever the United States shall be invaded, or be in imminent danger of invasion from any foreign nation or Indian tribe, the President may call forth the state militias to repel such invasions and to suppress insurrections. 1 Stat. 264, § 1 (1792). However, whenever federal laws were opposed and their execution obstructed in any state, by combinations too powerful to be suppressed by the ordinary course of judicial proceedings, or by the powers vested in the marshals by this act, the President would have to be first notified of that fact by an Associate Justice of the Supreme Court or by a federal district judge. Only after that notice could the President call forth the militia of the state to suppress the insurrection.
Id., § 2. In the legislation authorizing the Quasi-War of 1798, Congress placed limits on what President Adams could and could not do. One statute authorized him to seize vessels sailing to French ports. He acted beyond the terms of this statute by issuing an order directing American ships to capture vessels sailing to or from French ports. A naval captain followed his order by seizing a Danish ship sailing from a French port. He was sued for damages and the case came to the Supreme Court. Chief Justice John Marshall ruled for a unanimous Court that President Adams had exceeded his statutory authority. Little v. Barreme, 6 U.S. (2 Cr.) 169 (1804). The Neutrality Act of 1794 led to numerous cases before the federal courts. In one of the significant cases defining the power of Congress to restrict presidential war actions, a circuit court in 1806 reviewed the indictment of an individual who claimed that his military enterprise against Spain was begun, prepared, and set on foot with the knowledge and approbation of the executive department of the government. United States v. Smith, 27 Fed. Cas. 1192, 1229 (C.C.N.Y. 1806) (No. 16,342). The court repudiated his claim that a President could authorize military adventures that violated congressional policy. Executive officials were not at liberty to waive statutory provisions: if a private individual, even with the knowledge and approbation of this high and preeminent officer of our government [the President], should set on foot such a military expedition, how can be expect to be exonerated from the obligation of the law? The court said that the President cannot control the statute, nor dispense with its execution, and still less can he authorize a person to do what the law forbids. If he could, it would render the execution of the laws dependent on his will and pleasure; which is a doctrine that has not been set up, and will not meet with any supporters in our government. In this particular, the law is paramount. The President could not direct a citizen to conduct a war ] against a nation with whom the United States are at peace. Id. at 1230. The court asked: Does [the President] possess the power of making war? That power is exclusively vested in congress. . . . it is the exclusive province of Congress to change a state of peace in a state of war. Id. f