Re: Sarkozy Pushes for Abandonment of Dollar as World Reserve Currency

[Skip to the end] (email exchange) The dollar is a world reserve currency only because we are the only ones who ‘allow’ a trade deficit. With a trade deficit, the rest of world is long your currency. With a trade surplus, like japan, the world is short your currency. The eurozone wants a trade surplus […]


[Skip to the end] He’s not quite there. Yes, they need a ‘fiscal authority’ but he doesn’t see it’s function as providing the deficit spending necessary to sustain output and growth, though his mention of ‘currency printing’ could be stretched to suggest that. Instead, the focus is on collecting taxes to fund itself: Agree. Eastern […]