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Rakesh Bhandari wrote:
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<PRE>Without the latter (pricing of oil in dollars), the euro would probably be
sure to sink the dollar as world reserve currency--which would then
threaten the continued ability of this late imperial power to buy time
from its monstrous trade deficits.</PRE>
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Rakesh, leaving aside the question of why oil is priced in dollars, how
can any currency become a reserve currency unless the issuing state runs
up trade deficits? How else can large amounts of it end up in other people's
hands? Since EU states are oriented to export for dollars, how can the
Euro hope to compete with the dollar? By merely issuing money?
<P>Marl
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