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To: Skeeter Bug who wrote (19658)	4/30/2011 2:18:43 PM
From: arun gera	2 Recommendations Read Replies (1) \| Respond to of 119361

>i'm more alive than ever exposing the scum who have destroyed america - the debt pushers that turned america from the largest creditor nation to the largest debtor nation in the world in a single generation.> Isn't that more a of a problem because US dollar is the defacto reserve currency? Read about the Triffin Dilemma... en.wikipedia.org The Triffin dilemma (less commonly the Triffin paradox) (citation needed) is a theory that when a national currency also serves as an international reserve currency, there could be conflicts of interest between short-term domestic and long-term international economic objectives. This dilemma was first identified by Belgian-American economist Robert Triffin in the 1960s, who pointed out that the country whose currency foreign nations wish to hold (i.e. the global reserve currency) must be willing to supply the world with an extra supply of its currency to fulfil world demand for this 'reserve' currency (foreign exchange reserves) and thus cause a trade deficit The use of a national currency as global reserve currency leads to a tension between national monetary policy and global monetary policy. This is reflected in fundamental imbalances in the balance of payments, specifically the current account: some goals require an overall flow of dollars out of the United States, while others require an overall flow of dollars in to the United States. Currency inflows and outflows of equal magnitudes cannot both happen at once. The Triffin dilemma is usually used to articulate the problems with the US dollar's role as the reserve currency under the Bretton Woods system, or more generally of using any national currency as an international reserve currency.