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Re: [OPE-L] Trade Deficit Disorder

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----- Original Message -----
From: "Rakesh Bhandari" <bhandari@xxxxxxxxxxxx>

The CAD may be a bigger problem for US's creditors than it is
for the US!  As Susan Strange long ago pointed out in Mad Money
(1998): the US can use "its bargaining power as military protector, or as
interventionist meddler, or as major trading partner to get its own way
and to
make others undergo the painful adjustments."


Is there merit to re-examining the 1970s when the US transferred its
wreckage of the Bretton Woods currency system to Europe via exported
inflation, a lower dollar, the gold price explosion (and the $80 bn US
default on the $35/oz commitment) - before Volcker's 1979 shock? (And that
shock of course kicked off the Third World debt crisis and serious austerity
across the world.)

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