From: bmorris@netcom.com (Bob MorrisG)
Date: Sun, 19 Jun 94 09:11:23 PDT
To: cypherpunks@toad.com
Subject: DECLINE AND FALL
Message-ID: <199406191611.JAA20505@netcom12.netcom.com>
MIME-Version: 1.0
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To: cypherpunks@toad.com

LL> If capital flees a country, the population will be less
LL> productive, dissatisfied and vote the politicians out of office.  So
LL> policies that favor capital in some sense also favor labor.

LL> Anyone else care to take shots at his argument or support it?

Hot money ( investing money ) is always going wherever the best yield
is, and ignores national boundaries.  While this isn't capital investing
money, a big inflow/outflow to/from one country, especially a small one,
probably will affect the politics.

With global banking, and stock and commodity markets effectively open 24
hrs a day, this trend will increase.  For instance, the stock market of
Turkey zoomed up last year, and is zooming down now.  The hot money was
there last year as is leaving now.  This is undoubtably affecting their
internal politics.

 * RM 1.4 B0037 *