Re: Re: RE: three bears metaphor killed

[Carrol Cox <cbcox@xxxxxxxxx>]

Jim Devine wrote:

> Concerning "My Three Bears" [my op-editorializing piece], Max writes:
> >The Euro hasn't looked like much of a threat to the dollar, nor has
> >inflation been sensitive to the exchange rate, has it?  I'm not the
> >best person to judge this, but this is what casual observation suggests to me.
>
> You're right that the Euro isn't yet a rival to the US dollar (which is, in
> effect, the world currency). But with a sudden loss of confidence in the
> value of the dollar (and thus in US$-denominated assets),

I'm a Henwoodite in predicting big global aspects of the future, but just
an observation. The dollar as a world currency is closely intertwined
with U.S. military dominance. Would not a really substantial shift in
the world financial and/or economic structure have to have at least one
preliminary -- the withdrawal of U.S. troops from Europe? A serious
struggle for hegemony between European and U.S. capital seems unlikely
as long as U.S. troops are the major military force in europe.

Carrol