> Rebalancing needn't result in catastrophe; if the dollar fell 35% against
> the euro, its likely true value, and the new metropoles continue to pour
> ungodly amounts of liquidity into the world-system (latest news-flash: the
> EIB is sinking another 400 million EUR into Poland), things might turn out
> just fine.
But what if the dollar falls against the euro and it just ends up hurting European exporters and the ECB shrugs its shoulders? That seems the more likely outcome.
Seth