David B. Shemano wrote:
> There is a reason the US has a huge trade deficit, meaning US dollars
> return to the US as investment and not purchases -- foreigners trust the US
> courts that their investments will be protected. There are many countries
> where that it simply not true (or at least relatively not true compared to
> the US) and their economies reflect that fact.<
Could it have something to do with the growing military and financial
dominance that the U.S. has had since World War II? (On finance, we
may see the tide shifting.) Can it have anything to do with the way in
which the U.S. was able to insist that the US ("almighty") dollar
would be the main reserve currency in international transactions, as a
direct representative for gold immediately after World War II and then
a replacement for gold after the early 1970s?
There are a lot of countries which have a similar legal system which
at times have had a hard time attracting funds from abroad. It's not
so long ago that Britain -- from whom we got our legal system -- was
having foreign exchange crises.
--
Jim Devine / "If heart-aches were commercials, we'd all be on TV." -- John Prine
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