Re: The Third Wolf

["Gary Santos" <evs@xxxxxxxxxxxx>]

----- Original Message -----
From: "Warren Mosler" <mosler@xxxxxxxxxxxxxx>
>
> In military affairs, the US can be unilateralist. But the world of
economics is intrinsically multilateral. Those running the world's sole
superpower would do well to remember this potentially painful fact.<
>>?????<<WARREN
>FURTHER LARGE INCREASES IN NET EXPORTS TO THE US. THAT MEANS MORE PRICE
COMPETITION TO GET THOSE DESIRED $, SUPPORT THOSE EXPORTERS, ETC. YES, THE
DEFLATIONARY FORCES THERE ARE BUILDING RAPIDLY.  WAGES UNDER ATTACK, ETC.<
>>For the first time since the Great Depression we are likely to see a
trememndous reduction in money wages in developed nation and even many less
developed nations (e.g., Mexico) that are also going ultimately impact badly
on the real wages of the average worker in these countries. WE may see a
world wide attack on workers living standards -- except in countries like
China.<< Paul Davidson
---------------------------------------
Has anyone read Tuchman's "A March of Folly"? It seems to me that that is
where the world is headed. Can the world really sustain itself with 4/5 of
the world in poverty? The rich getting richer, the poor poorer even within
the US. The question marks of Warren hint that, perhaps, the situation can
go on for a good many years.

But, aren't the imbalances already at the point of showing cracks? The
belittled dinars are a sign, or at least, a symbol of discontent. 9/11 and
Iraq another. The need for large fiscal deficits all over the world. We
sustain ourselves with artificial life support regardless of the
sustainability issue. The lack of inflation. Artificially low interest
rates. And, China seems to be that one finger on the hole in the dike.