Emperor’s New Clothes…Your money is my money and my money is someone else’s…


Read this on NYT.. Great view of how the interconnected monetary games are coming to hit home!!

If Euro gets devalued,imports from EU zone will become cheaper for America and any imports from US will become more expensive.. America needs other currencies to move up or its exports may not be sustainably competitive and it will not be able to generate significant export volumes for its own recovery..The other option is for Americans to keep spending like crazy and keep importing until trade imbalances and high value of debt force exporters( China Included) to recalibrate their monetary systems into a higher valuation, but that will require a lot of government spending in the US just to push up sentiment – Republicans wont allow that( not at least until they’ve rattled Obama and got back into the White house) . Now if Americans allow all of America’s natural resources to be exploited at discounted price( much like the oil reserves elsewhere that they’ve exploited until now), keep currency artificially low by state-control of banks and convert those resources into mass-produced cheaper products for the rest of the world using cheap labor( from Mexico etc) ,well that’s another ‘China-Redux’ story with American endings ; Why does this sound like a miserable end-game to me ???? It is time to reconstitute Monetary and Financial economics and Fiscal policy within the framework of systemic social impact – When money goes from being a transacting measure of value to being a game that is played solely for what it’s worth, societies and people who generate wealth will become meaningless pawn in a destructive course.

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~ by exploreamaze on October 24, 2011.

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