Comments on: Mea culpa on the need for a new currency http://www.creditwritedowns.com/2009/07/mea-culpa-on-the-need-for-a-new-currency.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Name http://www.creditwritedowns.com/2009/07/mea-culpa-on-the-need-for-a-new-currency.html#comment-56735 Name Sat, 11 Jul 2009 12:40:00 +0000 http://www.creditwritedowns.com/2009/07/mea-culpa-on-the-need-for-a-new-currency.html#comment-56735 Excess consumption? Have you looked at the savings rate recently? I guess many Dollar bears assume it will go right back to negative territory in a V shaped recovery. What if a 10% savings rate and a lower trade deficit are here to stay as a secular scheme? Frugality anyone? Excess consumption? Have you looked at the savings rate recently? I guess many Dollar bears assume it will go right back to negative territory in a V shaped recovery. What if a 10% savings rate and a lower trade deficit are here to stay as a secular scheme? Frugality anyone?

]]> By: aitrader http://www.creditwritedowns.com/2009/07/mea-culpa-on-the-need-for-a-new-currency.html#comment-56734 aitrader Fri, 10 Jul 2009 23:11:00 +0000 http://www.creditwritedowns.com/2009/07/mea-culpa-on-the-need-for-a-new-currency.html#comment-56734 <i>In truth, the currency market, with the U.S. dollar as the principal reserve currency is in great need of an overhaul.</i> Fine. An overhaul to what? When Bretton-Woods took place the US was in a similar place to China in an economic sense. It had current account surpluses, an overwhelming industrial base, it was a primary victor in WWII, and it had the funds and political will to rebuild both its allies and fomrer enemies. China has only the current account surplus. Its political system is a trevesty and its currency is manipulated. Its industrial base is still decades behind the developed nations'. So where do we go from here? The IMF drwawing rights as a world reserve? The Yuan? How about the Lat? Come on, let's be serious. It's fine to poo-poo the dollar and we're all ears as to the next altetnative. Can we find one in the midst of a depression without crashing the whole system? I just don't see it happening. At least not without serious repercussions. In the current sitch we might just as well go back to gold & silver. They would at least be stable and beyond most attempts at manipulation. In truth, the currency market, with the U.S. dollar as the principal reserve currency is in great need of an overhaul.

Fine. An overhaul to what? When Bretton-Woods took place the US was in a similar place to China in an economic sense. It had current account surpluses, an overwhelming industrial base, it was a primary victor in WWII, and it had the funds and political will to rebuild both its allies and fomrer enemies.

China has only the current account surplus. Its political system is a trevesty and its currency is manipulated. Its industrial base is still decades behind the developed nations’.

So where do we go from here? The IMF drwawing rights as a world reserve? The Yuan? How about the Lat? Come on, let’s be serious.

It’s fine to poo-poo the dollar and we’re all ears as to the next altetnative. Can we find one in the midst of a depression without crashing the whole system? I just don’t see it happening. At least not without serious repercussions.

In the current sitch we might just as well go back to gold & silver. They would at least be stable and beyond most attempts at manipulation.

]]> By: Stevie b. http://www.creditwritedowns.com/2009/07/mea-culpa-on-the-need-for-a-new-currency.html#comment-56733 Stevie b. Fri, 10 Jul 2009 17:16:00 +0000 http://www.creditwritedowns.com/2009/07/mea-culpa-on-the-need-for-a-new-currency.html#comment-56733 Ed - it must be really difficult to post views every day with consistent clarity of thought. I know I couldn't do it. It's good that you are so open to reconsideration, as we all should be as part of the learning process Ed – it must be really difficult to post views every day with consistent clarity of thought. I know I couldn’t do it. It’s good that you are so open to reconsideration, as we all should be as part of the learning process

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