[lbo-talk] Can Any Econ Savants In The House Help This Little Black Duck?

SA s11131978 at gmail.com
Fri Oct 9 12:07:32 PDT 2009


Dwayne Monroe wrote:


> Several friends who are concerned about our current economic situation
> and who are struggling to make sense of it all have forwarded the
> following to me:
>
>
> "The Royal Scam"
>
> <http://www.oftwominds.com/blogaug09/KaPoom2CHS.htm>
>

Yikes. That's stupid/crazy. I thought conspiracy theorists were supposed to be superficially informed, if delusional, about their area of expertise. In this, there's not much there there.

His premise is that the US fiat currency system is about to implode, and his evidence is the example of what happened to Argentina. But Argentina didn't have a fiat currency - that was its whole problem. Its currency was pegged to the dollar. The severity of Argentina's crisis was caused by the fact that its foreign debt, and I think a lot of its internal debt, was denominated in foreign currency (the dollar), so when the peg collapsed and the peso had to be devalued the burden of debt skyrocketed. America doesn't have that problem because all of its debt, both internal and external, is denominated in its own currency. If our exchange rate collapses, our creditors will be screwed much worse than we'll be.

Does this kind of thing seem plausible to liberals? I would think it would scream "crazy" to them.

SA



More information about the lbo-talk mailing list