From: Reason (reason@exratio.com)
Date: Sun Mar 09 2003 - 15:58:56 MST
---> Dehede011@aol.com
> fortean1@mindspring.com writes quoting Laurie Garrett: I learned
> that the US
> economy is the primary drag on the global economy, and only a handful of
> nations have sufficient internal growth to thrive when the US is
> stagnating.
>
> This seems to be a perception of the conference attendees but I wonder in
> what sense this is true:
> 1. Is it merely their perception whether true or untrue?
> 2. Are they saying that the American Market is determinative of all the
> economies of the world?
> 3. Are we supplying material that is vital to the economies of the world?
These should answer your questions in a roundabout manner:
http://www.mises.org/fullstory.asp?control=1175
http://www.mises.org/fullarticle.asp?control=1166&month=53&title=Six+Myths+o
f+the+Crash&id=54
http://www.mises.org/fullarticle.asp?control=1171&month=53&title=Deficits+Do
+Matter&id=54
The bottom line is that the US supplies dollars to the world. Dollars are
just another commodity. Since dollars are not backed by any other commodity
(gold, say), and cost far less to produce than they retail for, the US can
create the means to pay for resources out of thin air. (So can any other
Western nation, but the US is in the position of being able to distribute
the devaluation of the commodity to other dollarized markets in the world --
any other Western country that did what the US has been doing over the past
20 years would be in the midst of hyperinflation and economic collapse). The
US is aggressively devaluing the dollar by issuing more to pay for trade and
other deficits. This affects the world economy.
Reason
http://www.exratio.com/
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