two currencies, it has to come.
from wiki:
Import Certificates are an idea for governmental economic intervention to fix a country’s trade deficit. The idea was first proposed by Warren Buffett. In the United States, the idea was first introduced legislatively in the Balanced Trade Restoration Act of 2006. The proposed legislation was sponsored by Senators Byron Dorgan (ND) and Russell Feingold (WI), two Democrats in the United States senate. Since then there has been no action on the bill.
[edit] Concept
Buffett’s plan proposes creating a market for import certificates that would represent the right to import a certain dollar amount of goods into the United States from other countries. These certificates would be issued to US exporters in an amount equal to the dollar amount of the goods they export, and can be sold to importers, who must purchase them in order to legally import goods. The price of an import certificate is set by free-market forces, and therefore ultimately is dependent on the balance between imported and exported goods through supply and demand.
Proceeds from the sale of import certificates would encourage exporters (who would gain that extra money in addition to the proceeds of their exports) and discourage importers (who would need to pay the additional cost to acquire import certificates as well as the cost to acquire the goods they are importing)
This system would essentially create a broad-based tariff on imports to the United States. Unlike traditional tariffs, however, this would not favour any particular industry or punish any particular country. Market forces would also keep the tariff at exactly the amount required to achieve trade balance, eventually eliminating it when it is no longer necessary.
As a theoretical concept, the idea could apply to other countries besides the United States, but Buffett argues that practical realities make it unlikely to succeed elsewhere. In particular, for any country which maintains a trade surplus the import certificates will be valueless.
I’m not sure I’ve got this, but:
with two currencies, we’ll need to protect our currency and productive capacity. But if our currency is already worthless, what is a tariff doing besides aggravating inflation? Revenues? At the risk of political chaos?
Where’s the gain for 0 & co. ?
This all seems very innocuous, but who gets the certificates and whho does not?There is the rub. This is essentially non free market control .Its fascist, and Buffet a=is assuming we have an innocuous governemnet without a poitical agenda. Thats just untrue, as rick agoner and the natuon now know all to well.
No one is interested in this idea. It gives away freedom of the economy.