[lbo-talk] Coming Currency Shock

[joanna bujes]

A related question, if 80% of the world savings are being used to 
subsidize our deficit/spending, inflating the dollar with essentially 
lower the value of 80% of the world's savings. To safeguard the value of 
their "savings" would not other countries devalue their 
currencies....resulting in competitive currency devaluations? Is this 
not what the rembini/dollar peg is already about?

Joanna

Eugene Vilensky wrote:


> I lurk the list but I'm not sure my big question has been touched upon:
>
> Are other major 'developed' countries in as much danger of having 
> their economies tank if the US goes under?  That is, will this be 
> accompanied by a global depression?
>
>
> On Nov 22, 2004, at 12:50 AM, R wrote:
>
>>
>> November 16, 2004
>>
>> The Coming Currency Shock
>> Declining Superpower Act
>> By PAUL CRAIG ROBERTS
>>
>> China's currency peg to the US dollar prevents correction of the US 
>> trade imbalance and imperils the US dollar's role as reserve currency.
>> ...
>
>
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