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To: THE ANT who wrote (48034)	4/3/2009 4:03:29 AM
From: elmatador	Respond to of 220208

I agree that both capital hogging and lots of natural resources can create weaker structures that cracks and eventually fall. But there is a degree of difference. You need to go dig th iron ore in the middle of the jugle (Carajás) construct 800Km of railways and new harbor and get ships. Or take 2 and half crops a year in Mato Grosso. Get your own oil 2Km below sea level at Campos or develop ethanol industry. There is a degree of effort involved on that although the population as a whole do not need much education nor the strucuture (legal, fiscal) need to be high developed. Now compare that on plain and simple print money to other people to buy. It is like having a gold mine on your back yard without no need to dig. Thus a reserve currency -capital hogging is done to keep the price of that currency up- is much more worse than natural resources.