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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (72223)	9/21/2004 3:27:32 AM
From: Ilaine	Respond to of 793862

>>We own the world's reserve currency. Yes. As I posted a few minutes ago, this is because we have the world's strongest, or at least biggest, economy. >>That's part of our hegemony. Hegemony, empire, it is the same thing. >>However, China and Asia are not in any sense within "our" borders or subject to our rule. They are within "our" borders to the extent that our military protects their free trade with us. Which it does. They are within "our" rule to the extent that we trade with them on our terms. Which we do.

To: Nadine Carroll who wrote (72223)	9/21/2004 3:32:07 AM
From: Ilaine	Read Replies (1) \| Respond to of 793862

The alternative to the American dollar, by the way, remains gold. Gold has been the world's reserve currency for thousands of years. It's not perfect, for example, there simply isn't enough of it to avoid deflation, and it's heavy and hard to divide into trivial sums such as pennies, but it's totally reliable. Without the US dollar, we'd be using gold again, which would be a disaster. That's what caused the Great Depression of 1929. But it's far superior to unbacked fiat money, that's what caused the hyperinflation of the early 1920's, an even worse disaster. It also destroyed the French economy and led to the French Revolution. Among other historical disasters, just naming a few.