[lbo-talk] Prospects and consequences of a devalued USD

[Michael Perelman]

But Julio's words also mean that at the first sign of danger, everybody 
will rush to dump the USD.

On Mon, Feb 01, 2010 at 12:24:19PM -0500, Julio Huato wrote:
> equilibria.  At one extreme, everybody uses it because everybody else
> uses it.  At the other extreme, nobody uses it because nobody else
> uses it.  For the time being, and to the extent the victims of the USD
> can't credibly collude to dump the USD (because they are differently
> tied to the fate of the U.S. economy), the USD is safely entrenched:
> there are some upfront "transaction costs" that will fall on those
> first switching to another denomination.  But, unless the U.S.
> miraculously reverses the geo-economic trends of the last half a
> century, it is bound to happen.
> ___________________________________
> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com