I have already answered this pertinent question. The asymmetry is due to the status of dollar as the wolrld account unit of debt. So that the USA are the only ones paying their debt with their debt. The very question is : why is the trade balance of world system's metropolis systematically negative through history, from ancient Athens to the USA, notably through Rome, 16th-century Europe and Victorian England? and the answer can be found in a Luxemburgist way. RK
----- Original Message ----- From: "Michael Pollak" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Wednesday, May 15, 2002 11:50 AM Subject: [PEN-L:26008] Re: Protectionism US style > > On Mon, 13 May 2002, Michael Perelman wrote: > > > > Theoretically speaking, how does a deteriorating fiscal position lead > > > to a strong dollar? > > > > deficits => high interest rates => strong dollar. > > That makes perfect sense. Except how come for all other countries, > growing deficits lead to weaker currencies? And how come, during the 90s, > surpluses and low interest rates led to a strong dollar? And deficits and > high interest rates led to a weak Euro? Are these not considered enough > anomalous results to make this theory slightly questionable under present > arrangements, where capital accounts are all wide open? > > Michael > >
