Clown-Free Zone... sorry, no clowns allowed Message Board

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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: NOW who wrote (246136)	6/18/2003 1:13:21 AM
From: Perspective	Read Replies (2) of 436258

I think there is a crucial difference between the prior deflationary experiences (Japan, US 1930s) and now, and that is the immense US foreign debt, manifest in the huge foreign holdings of US dollars. If the other countries of the world decide that they actually want to exchange those little green slips of paper for something useful, the dollar will collapse, and we will import inflation. And no, it will not improve things. It will make them even worse as our standards of living decay. But at least some of our exports might become competitively priced again... BC

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