[BenKenobi]

Heh, deflationistas have known this for awhile now.

Interesting how he argues against a common currency and for a common currency all at the same problem. Greece’s problem is that they no longer have a Drachma and are roped to the Germans through the Euro. If they had their own currency then they would be far better off and could let it sink.

As for the Yuan peg, all pegs cost money. The ‘self-fixing’ mechnanism is market inefficiency associated with the Peg. China’s burning money to keep their peg up.

[familyop]

Ah, yes--the poor, southern European victims of mean, northern work ethics and conservative money practices. And the unauthorized, audacious peasants are daring to save instead of borrowing and spending, as though they were granted license. [Little irony and sarcasm there.]

Let's get to the real European fear behind the usual chatter. "North America...escalating towards a cascade of Smoot-Hawley tariffs and barriers....By then you would have the US recovering behind its wall...Ultimately, America would get its way."

Well, government, the Fed, and shady, globalist gangs perpetrating ambushes of shorts, moves and swaps keep our USD held to ridiculous levels relative to trade imbalances, even after the proper but insufficient debt downgrade. Our fearless leaders will keep the debt/trade regime going as long as they can at all costs.

They haven't really seen the consumer tighten-up, yet. As for us getting our "way," yes. We will have nowhere to go but up in the eventual trade/currency contest, while our foreign trading partners have much to lose. As for our global, bipartisan leadership in American politics for anti-American interests, it also has much to lose and can lose more quickly than assumed.

Let's begin to do the tighten-up. And politics...not so much.