Re: [Marxism] ALBA attempts to create Latin Am. currency forregionaltransactions

["S. Artesian" <sartesian@xxxxxxxxxxxxx>]

Sure you do, need the US to sign on, if you happen to be the largest economy 
in Latin America and the US is your single largest trading partner- like 
Brazil is, like the US is for Brazil.  Why would Brazil's commercial banks 
issue letters of credit for transactions in Sucres if and when they cannot 
co-mingle those funds with their other reserves to finance exports, imports 
from everywhere and anywhere?

Regarding the failure of the euro oil bourse, there is a far greater 
weakness to the notion of euro substitution than just "nobody wants to 
create a run on the dollar,"  or "the US will never tolerate pricing oil in 
euros" and that far greater weaknes is the weakness of the euro, of the 
European Union itself vs. the United States.

The centrifugal tendencies at work in Europe do not make it a dead cinch 
certainty that the euro will be around in five years-- or that it will be 
around in as the currency of 12, or 17, or 27 countries.  Given the 
requirements for budget deficit limits etc. in order to qualify for euro 
"membership"  it's not all that certain that Ireland, Greece, Portugal, even 
Spain might not just opt out of the system.  That's at least part of the 
reason why even Russia which conducts 80-90% of its gas export business with 
Europe hasn't embraced Putin's bluster about euro-denominated trading.

Anyway, this all contains a big element of  speculation of course-- but then 
what is the virtual currency of the Sucre if not pure speculation and 
fantasy?


----- Original Message ----- 
From: "nada" <dwaltersMIA@xxxxxxxxx>
To: <sartesian@xxxxxxxxxxxxx>
Sent: Sunday, April 19, 2009 4:37 PM
Subject: Re: [Marxism] ALBA attempts to create Latin Am. currency 
forregionaltransactions


>A big "hmmmmmm" on this discussion. I'm not 100% sure S. Artesian is
> correct here. You don't absolutely need the US to give it's "OK" to the
> new currency. Countries just don't 'switch' like that. It can be a slow
> process. It's also not up to the US, it is up first and foremost to the
> countries that agreed to trade in any new currency, thus attaching value
> to the currency, rather a  representation of value to the currency in
> question.


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