Ed wrote:
> Personally, I don't think currency is the issue, nor do I think that an
> international currency would resolve it.  We already have real or defacto
> international currencies, the U$ dollar and the Euro and we also have gold,
> yet the problems continue to mount.

The fact that the US$ is used internationally as an exchange currency
doesn't make it an "international currency" -- it's still controlled by the
U.S. alone (worse: by the *private* FedRes!).  And gold has become an object
of speculation because bought politicians have dropped the gold standard and
sold much of the gold reserves.


> The real problem seems to have two key aspects to it.  One is that economies,
> especially advanced economies,  have extended their consumption far beyond
> their ability to produce and thus rely on 'bailouts', whatever their form,
> to keep doing what they are doing.  The US, for example, relies heavily on
> China to leverage its fiscal debt.

The U.S. stands out in having such a negative trade balance -- but that
doesn't mean that this is typical of advanced economies.  The French
finance minister even went as far as asking Germany to export less!
Germany has a large positive trade balance, but still there were bailouts.
Guess what, the Predators go for the most lucrative hunting grounds...

Chris




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