From: Dehede011@aol.com
Date: Sun Mar 09 2003 - 16:50:33 MST
In a message dated 3/9/2003 5:00:40 PM Central Standard Time,
reason@exratio.com writes: 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.
Reason,
Is that just a complex way of saying that we have we have financed our
negative trade balance by printing money and the other countries, thus far,
have been foolish enough to accept the printed dollars -- they have no value
behind them.
Tell me what happens if they refuse to accept dollars. Or on the
other hand begin using their dollars to buy commodites in this country? I
always understood that was the way free trade was supposed to work.
Ron h.
This archive was generated by hypermail 2.1.5 : Sun Mar 09 2003 - 16:55:42 MST