Re: Re: Re: Protectionism US style

["Romain Kroes" <romain.kroes@xxxxxxxxxxxx>]

Michael Perelman wrote:

> deficits => high interest rates => strong dollar.

I propose another algorithmic system:

1.
USA's trade deficit                  )
            +                                    )  ==> strong dollar
Dollar as account unit of debt)

2.
Hardening elasticity between growth rate and price index ==> inflation
tendency ==> Mr Greenspan's constipation

I mean strong dollar and high interest rates are independent processes, as
far as the USA are concerned. What is true of any other country and currency
is not of the USA and dollar, because, due to the status of dollar as the
world account unit of debt, the USA are the only economic territory which
pays its debt with its debt. World-System order is an asymmetric one.

Romain Kroës