Global South elites also profit from Federal Reserve rate hikes

Evidence

In the international economic hierarchy, local elites in the Global South also benefit from austerity policies. When the Federal Reserve decides to raise interest rates to combat inflation, striking down the American working class, the ripples of monetary austerity are felt internationally. Certainly, international creditors of the Global North benefit from the higher interest rates that countries indebted in US dollars have to pay. But local capital holders also benefit, since central banks in the Global South will raise their own interest rates to prevent investors, attracted by higher returns, from moving their capital to the US. — Clara E. Mattei, Escape from Capitalism, 340

Categorization

• XREF: Complements the earlier chapters on austerity as a class project; shows the same logic operating transnationally, with local oligarchs aligned with global creditors. — connects to: Finance colonizes global South elites and American urban poor via intermediaries — Max Haiven, Cultures of Financialization, 153; Global wage suppression was engineered to boost dollar profit rates — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 199; Dollar-denominated debt is bankrupting the Global South during the Great Inflation — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 626 (+1 more)

Broader Connections

• Dollar-denominated debt is bankrupting the Global South during the Great Inflation #expands (0.85) — Yanis Varoufakis, Technofeudalism, 626
• Finance colonizes global South elites and American urban poor via intermediaries #expands (0.82) — Max Haiven, Cultures of Financialization, 153
• Global wage suppression was engineered to boost dollar profit rates #expands (0.78) — Yanis Varoufakis, Technofeudalism, 199
• The Federal Reserve acted subservient to banks while posing as a regulator #expands (0.72) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 2082