The current worldwide problem in economy is we use dollar as standard
currency for international trading, i.e every countries try to export as much goods as possible to compete for dollars, but no single country has unlimitted reservation of dollar except US. So, there will
be winners, end up with a lot reservation of dollars, and losers, end
up with higher deficit in dollars which was transfered to foreign debt. Unfortunately, the worldwide economy is a closed system. If
Japan overly exports lots of goods to the S.E.Asian countries, the
dollar reservation in those countries will be dried up, and they will
have less power to import from Japan or other countries, this will end
up with economy crisis. Few countries nowadays can close the door
without doing any international trade to survive except China, US, USSR, the whole western Europe.Think about this way, if only Japan is
prosperous and the rest of the world is in trouble, then Japan can not
export enough autos to the rest of the world to sustain its over capacitied auto industry. That is the same thing for US and Intel.
So, in the economic world, short term there will be losers and winners, but long term if the import and export between countries can not reach a balance so that everycountry benefit, then everyone will be loser. The recent S.E. Asian currency crisis came as a result of
over finance for debt to sustain for import for domestic build up.
To say it in another word, it is a crisis of Dollar deficit in those countries.
To eliminate those problems in the long term, we need to change the
current international trading system copletely, i.e instead of using
dollar as a standard currency, we need do trade goods with goods, instead of trade goods with dollars. With such arrangement, we won't have a dollar deficit problem. In the traditional trading system,
the countries export more goods will generate more jobs domestically,
while countries imported more will end up with less jobs domestically and dried up with their dollar reservation , and as a result less capacity to do import later. With "goods trade with goods", everyone will be a winner. |
