loosecannon
Senior Member
- May 7, 2007
- 4,888
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- #21
Like the article said and I concur:
"So we have an early 1930s world where surplus states are hoarding money, instead of recycling it. A solution of sorts in the Great Depression was for each deficit country to devalue, breaking out of the trap (then enforced by the Gold Standard). This turned the deflation tables on the surplus powers – France and the US from 1929-1931 – forcing them to reflate as well (the US in 1933) or collapse (France in 1936). Contrary to myth, beggar-thy-neighbour policy was the global cure."
after I started this thread and began to think about it I began to warm up to the idea that a debasement war might be far more of a solution than a problem.
To address the unparalleled imbalance that is globalization.
When you think about it a nation states world that embraces full trade is running the same risks as an EU that shares a currency and economic liberalization while maintaining regional states.
Very little real difference between the macro world under globalization and the micro world of Europe under the EU.
But of the two the EU seems to have more advantages built in.
"So we have an early 1930s world where surplus states are hoarding money, instead of recycling it. A solution of sorts in the Great Depression was for each deficit country to devalue, breaking out of the trap (then enforced by the Gold Standard). This turned the deflation tables on the surplus powers – France and the US from 1929-1931 – forcing them to reflate as well (the US in 1933) or collapse (France in 1936). Contrary to myth, beggar-thy-neighbour policy was the global cure."
after I started this thread and began to think about it I began to warm up to the idea that a debasement war might be far more of a solution than a problem.
To address the unparalleled imbalance that is globalization.
When you think about it a nation states world that embraces full trade is running the same risks as an EU that shares a currency and economic liberalization while maintaining regional states.
Very little real difference between the macro world under globalization and the micro world of Europe under the EU.
But of the two the EU seems to have more advantages built in.