From: "Harald Beyer-Arnesen" <haraldba-AT-online.no>
Subject: Re: Re: AUT: Not Oil, But Dollars vs. Euros  ??
Date: Sun, 30 Mar 2003 12:38:19 +0200



----- Original Message ----- 
From: <Michael_E_Jackson-AT-brown.edu>
To: <aut-op-sy-AT-lists.village.virginia.edu>
Sent: 30. mars 2003 09.18
Subject: Re: Re: AUT: Not Oil, But Dollars vs. Euros ??


Michael. You are of course correct that there is a circle
argument underlying  the Steve H. Hanke piece, and a
general unability to even think the thought that U.S. might not
be the dominant economical power for all future, or 
that any more far-reaching economical crises could
come its way.

Some speculative thought::

It is not very hard to agree with you in that. "The greatest
strength of the dollar thus far has been simply that the US is
where capital flows *to* according to 21st century tradition. 
This is the basic threat posed by Europe in the long run... it's
potentially large, active, and stable enough to seem
appealing in a crisis."
        On the other hand, that Europe's prosperity is so
closely interlinked with that of the United States to me 
seems to provide a protection for the USDollar/economy.
But should China-Japan et also gain a position close to
that of the European Union, this might change a lot.
        I would in no way deny that Geoffrey Heard and Faisal
Islam are pointing to something potentially important. But ...
        Anyway, to add something. I am pretty sure that the Bush
adminstration might also be more than willing to wage a
war for the symbolic power of the sacred dollar. But I
doubt if it is the major driving force behind the war taking
place in Iraq right now. Which does not imply that I could
not be a contributing factor.

Sorry, not to be "a former bourgeois economist" :-)
Just trying to apply common and critical  sense, and
learn something along the road.

Harald











     --- from list aut-op-sy-AT-lists.village.virginia.edu ---