"World trade is now a game in which the US produces dollars and the rest of the world produces things that dollars can buy," writes Henry C K Liu in the Asia Times. "The world's interlinked economies no longer trade to capture a comparative advantage; they compete in exports to capture needed dollars to service dollar-denominated foreign debts and to accumulate dollar reserves to sustain the exchange value of their domestic currencies."
There are a number of people who believe that dollar hegemony was a key component of the 90s economic boom in the United States. Mr. Liu concurs and says that its continuance is unsustainable and unacceptable. He proposes a number of corrective measures. You can read the entire article by clicking here. Thanks to Michael Thomas for the link.
Sunday, April 28, 2002
Posted by John at 4/28/2002 08:59:00 PM