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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (111963)	5/24/2010 5:01:59 PM
From: maceng2	Read Replies (1) \| Respond to of 116555

Many non-capitalistic (or lacking competitive capitalist values) are currently engaging in mercantilist policies, using monetary manipulation to maintain their favorable export status and trade surpluses. I'm not out to fix world hunger or make world peace with the single currency idea. Deficit spending can only occur with a fiat system. Fiat systems can exist as much as they like but a prudent businessman would store wealth in a solid world currency system. A country can lower the value of their currency to get exports up, but that would only suck the wealth out of the country faster then some empire swapping goods for heroine (see La Rouches web site) Whether such an idea is supported or not, it going to happen for sure as things are trending at the moment. In the absence of co ordinated action by politicians on a world wide stage, gold and silver will become the de facto currencies. The crisis is setting up for a quick reset to zero though hyperinflation.