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currency policy

Why this anti - Euro hype in the global economic crisis?

Amid a European and global economic crisis, governments are still letting markets get away with little regulation, big bonuses and dubious financial instruments that are distorting financial stability for short-term gain and putting enormous pressure on people to pick up the manufactured debts. (See also "The US Dollar as a weapon: debt and devaluation," which is about a fascinating theory of this kind of economic policy in relation to US debt.)

The US Dollar as a weapon: debt and devaluation

The decline in the value of the US dollar is engineered by the US government in order to make US products more affordable and to relaunch their manufacturing economy. The world is trapped by the US into subsidising its debt on account of the very large market it represents and the control over the money markets of US corporate investors. Other economies with higher value currency will experience a falling off in sales because the goods they produce will be less affordable on the world market. Hans-Peter Martin and Harald Schuman wrote about this 'trap' late last century. Read what they wrote then and consider how well it explains our current situation.

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