tag:blogger.com,1999:blog-502356674750161309.post4029220760878745460..comments2008-11-18T23:08:55.702-08:00Eric deCarbonnelhttp://www.blogger.com/profile/08023745289801416061noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-502356674750161309.post-30191031588860741412008-11-18T23:08:00.000-08:002008-11-18T23:08:00.000-08:00Hi disinter, fooser77<BR/><BR/>I wrote more about my thoughts on The G-20's Secret Debt Solution in a blog entry yesterday...<BR/><BR/><A HREF="http://www.marketskeptics.com/2008/11/g-20s-secret-debt-solution.html" REL="nofollow">"The G-20's Secret Debt Solution"</A><BR/><BR/>...and in a comment last night:<BR/><BR/><BR/>Chinese leaders have deliberately held down living standards for their own people and propped them up in the United States. This is the real meaning of the vast trade surplus-$2 trillion and counting, going up by about $1 billion per day-that the Chinese government has mostly parked in U.S. Treasury notes. In effect, every person in the United States has over the past 10 years or so borrowed about $5,000 (5oz of gold) from someone in the (poor) People's Republic of China.<BR/><BR/>Now Larry Edelson is proposing the US take that dept to China and make it into .5oz of gold per capita instead of 5oz. Why would China ever go along with that?<BR/><BR/><BR/>----------------------<BR/><BR/>As to why I don't believe we will be seeing a world currency anytime soon, the answer lies in the problems plaguing the euro. Here is one example:<BR/><BR/>Governments can go bankrupt if they don't control their own currency or interest rates. Because of this, there are strict budget rules governing the euro. This makes difficult for nations to deal with recessions because they don't control interest rates and their spending is limited by budget rules.<BR/><BR/>There are a buch of other problems with a euro-like world currency. In fact, All the problems with the euro would be even worse in a world currency.<BR/><BR/>For more on how the euro is faring, check this link::<BR/><BR/><A HREF="http://prudentinvestor.blogspot.com/2008/10/euro-has-very-real-problems-and-nobody.html" REL="nofollow">The Euro Has Very Real Problems - And Nobody Really Stands Behind It</A>Eric deCarbonnelhttp://www.blogger.com/profile/08023745289801416061noreply@blogger.comtag:blogger.com,1999:blog-502356674750161309.post-61315276383141627672008-11-17T14:16:00.000-08:002008-11-17T14:16:00.000-08:00disinter, I beat you to the punch in <A HREF="http://www.marketskeptics.com/2008/11/rally-on-monday.html?showComment=1226711580000#c8383037032323906735" REL="nofollow">this thread</A>. Eric gives his response there, with my follow-up. So, what do you think?fooser77http://www.blogger.com/profile/11896368046429483789noreply@blogger.comtag:blogger.com,1999:blog-502356674750161309.post-72351049858311428672008-11-16T22:37:00.000-08:002008-11-16T22:37:00.000-08:00What are your thoughts on this?<BR/><BR/>http://www.moneyandmarkets.com/the-g-20s-secret-debt-solution-27996disinterhttp://disinter.wordpress.comnoreply@blogger.com