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To: elmatador who wrote (70869)	2/6/2011 3:38:01 PM
From: carranza2	Respond to of 218578

US's main export, in addition to food, is inflation via USD. It stands to reason that if a currency is pegged to USD, inflation is the result. China's best bet is to itself export its USD to others and let its currency drift higher. I think this is why we are seeing recent Euro strength. It can also use USD to buy hard goods, commodities, etc. Duncan makes the point elsewhere that continuing fiscal stimulus, i.e., a big deficit for years to come, is inevitable and necessary. I think he is correct in noting that if deficit spending is cut, demand is eviscerated and the whole Ponzi scheme falls apart. I think he is right. I am changing my mind about the need for deficit spending. Perhaps a necessary evil at this time The point he makes is that deficit spending needs to be made in a clever way. We should not allow banksters to take slices of it. And we should invest it intelligently, in a way that results in positive outcomes.