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To: Night Writer who wrote (8710)	11/8/1997 3:48:00 PM
From: hpeace	Read Replies (2) \| Respond to of 97611

nw, did you leave out that we took the productivity lead back years ago. I think it's been pretty much the USA ,then germany then japan for years.

To: Night Writer who wrote (8710)	11/9/1997 5:30:00 AM
From: ed	Respond to of 97611

The current worldwide problem in economy is we use dollar as standard currency for international trading, i.e every countries try to export as much goods as possible to compete for dollars, but no single country has unlimitted reservation of dollar except US. So, there will be winners, end up with a lot reservation of dollars, and losers, end up with higher deficit in dollars which was transfered to foreign debt. Unfortunately, the worldwide economy is a closed system. If Japan overly exports lots of goods to the S.E.Asian countries, the dollar reservation in those countries will be dried up, and they will have less power to import from Japan or other countries, this will end up with economy crisis. Few countries nowadays can close the door without doing any international trade to survive except China, US, USSR, the whole western Europe.Think about this way, if only Japan is prosperous and the rest of the world is in trouble, then Japan can not export enough autos to the rest of the world to sustain its over capacitied auto industry. That is the same thing for US and Intel. So, in the economic world, short term there will be losers and winners, but long term if the import and export between countries can not reach a balance so that everycountry benefit, then everyone will be loser. The recent S.E. Asian currency crisis came as a result of over finance for debt to sustain for import for domestic build up. To say it in another word, it is a crisis of Dollar deficit in those countries. To eliminate those problems in the long term, we need to change the current international trading system copletely, i.e instead of using dollar as a standard currency, we need do trade goods with goods, instead of trade goods with dollars. With such arrangement, we won't have a dollar deficit problem. In the traditional trading system, the countries export more goods will generate more jobs domestically, while countries imported more will end up with less jobs domestically and dried up with their dollar reservation , and as a result less capacity to do import later. With "goods trade with goods", everyone will be a winner.

To: Night Writer who wrote (8710)	11/9/1997 6:51:00 AM
From: ed	Read Replies (1) \| Respond to of 97611

I forgot to explain why we use dollar as a standard trading currency previously. In the past thirty to fourty years, US is a large market which absorbed unlimitted products from all over the world, this phenomina brought the world with thirty to fourty years of propersity.US, traditionally, is a country of big trading deficit, however, it won't hurt the US economy with dollar as international trading currency, which will not generate any foreign debt for US. US just spreaded the world with dollars in exchange for unlimitted foreign goods flooded in the US market. As time goes by, when most of US industry is over capacitied, the US corps go outside to look for overseas market to sustain domestic job market, the conflict started from here.By exporting lots of goods from US corp to the rest of the world, which will bring back huge amount of dollars, and will drain out huge dollar reservation from other countries, which are used for import for other countries (we start to see dollar is over valued recently, more goods tracing for less dollar reservation from other countries, which also means deflation, and less international trading later). The fact is US is no longer a huge market which can absorb unlimitted exports from the rest of the world and US corps also start to export to sustain domestic job market, while at the same time we are still using dollar as standard trading currency and the rest of the world still think US is an unlimitted market and try to export unlimittedly to US. This is where the trading unbalance start with Japan, with China, with the rest of the world. To fix this problem, we need to find another market which can absorb unlimitted exports from the rest of the world for the worldwide prosperty of next fifty years, and at the same time will not destroy the currency of that special market. China with its 1.4 billion of population will be a huge market to absorbe the worldwide products in the next fifty years, and to make China the biggest reservoir for the worldwide products, we should use China's currency as the standard international trading currency so that China can import unlimittedly from the rest of the world in the next fifty years. Or we need to change the current trading system, i.e "trade goods with goods".