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Gold/Mining/Energy : Gold Price Monitor
GDXJ 106.75-0.5%4:00 PM EST
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To: Crimson Ghost who wrote (72693)7/1/2001 7:40:51 PM
From: Rarebird  Read Replies (2) of 116791
 
<How much longer can the world tolerate the current international monetary system which gives the US tremendous advantages enjoyed by no other nation.>

They'll tolerate it as long as hope remains that the U.S. economy recovers and resumes growth.

<It is this monetary system that has made the prosperity of many nations depend upon the US ability to run huge trade deficits year after year -- thus enabling Americans to live far beyond their means.>

Well, who bailed Asia (minus Japan) out of its problems in 97-98 if it wasn't the U.S. consumer and the Federal Reserve? To be sure, that option is not available this time.

<The designers of the system were clever indeed -- making the prosperity of others dependent upon their ability to help US consumers live beyond their means.>

I'd prefer to call it economic blackmail: Just do what I tell you and lower your interest rates and keep sending money over here to support our current account deficit or else you'll go down the tubes if our economy falters.

<the current international monetary regime simply cannot last much longer IMHO.>

That is quite a grave statement, the consequences of which I don't think most people are aware of. We are talking about the whole foundation in which the global economy is based. Clearly you are assuming money fund defaults and a major derivative crisis, the likes of which would make LTCM pale by comparison.

So, which Asian or European country is going to break the U.S. stranglehold and exchange U.S. Dollars for Gold a la Charles DeGaulle?
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