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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (15255)	1/1/2002 4:14:07 PM
From: Maurice Winn	Read Replies (5) \| Respond to of 281500

Lindy, with the birth of the Euro a day ago, it's a bit presumptuous to say that the whole world is converting to a dollar economy because it "is the safest currency in the world". Actually, there is highly educated opinion that the US$ is in fact under more risk right now than other major currencies. Ask Jay ... Message 16848907 I am betting my worldly goods on the US$ going the way of the moa, killed off by a hungry new invader, the Q. [Moas were eaten and became extinct after the Maoris arrived in Hobbitland]. The Q will also eat the Euro and all the other ratty little lying fiat promises issued by governments which have no business issuing promises to pay. It is absurd for people to put their trust in politicians to pay when the politicians have no means of making payment the day the populace throws off the yoke. Do people really trust Bill Clinton and his ilk in such a hugely important matter? Just how far would you trust Bill Clinton? It boggles the mind. Meanwhile, until the jig is up, as you understand, the printing presses can run while demand soars and the technology revolution and globalisation hack prices, meaning inflation doesn't appear. What a money-tree paradise for the USA. But it's a fool's paradise. Enjoy yourself, it's later than you think. Mqurice

To: LindyBill who wrote (15255)	1/2/2002 8:12:31 AM
From: Bilow	Respond to of 281500

Hi LindyBill; Re: "The whole world is converting to a "Dollar economy", because it is the safest currency in the world." It already happened once, and it will inevitably happen again. Jimmy Carter was president at the time and got blamed for it. When the foreigners dump their greenbacks it makes for quite the mess in the US. That (i.e. 1972-1982) was the first time the US dollar got dumped while it was the world's reserve currency. Before that, the British pound was the reserve currency, and I understand that it got dumped every now and then as well. The dumpers typically put their money into other currencies. But enough will put their money into gold and commodities to drive the prices of both sky high. The problem appears to be one that happens when you have the combination of the US having a recession at the same time as the rest of the world has a boom. It's okay for the US to "catch a cold" as long as the rest of the world does that or worse. This is not at all off topic for "foreign affairs". When these things happen it changes the world's international relations, at least temporarily. A substantial portion of the US's power is economic power, and these events reduce that power quite a bit. I remember back during the last big event that people were talking about Japan growing to be more powerful than the US. This was wrong, but that doesn't mean that the talk didn't occur. And most of foreign affairs is, after all, just talk. -- Carl