The question is how many different future possibilities one has.
What happens if oil is no longer symbolically traded in dollars? What happens if suddenly governments want to diversify more and more to euros?
And on the other hand.. what happens if the dollar keeps on falling against other currencies. There can be a cascade effect? Would oil producing countries switch to the euro (int heir reserves) in that case?
I think a graph showing a network with of exports-imports among the different blocks, and the debt hold by the different groups would be really awesome to have a nice view on how the different money-debt-oil/gas/no manufacture-manufacture products move around.
This is, a network without third sector products or housing... only exports , imports, debt and currency holdings. Is the US in a very soft spot? How would the european economy turn out if the dollar and the exports to the US collapses but an influx of demand of euros appear?...and this taking into account that Japan and CHina are also affected.. and they can also affect Europe.
I do not have the image on my mind....and I am not sure the great economists of our time have it either.
A pleasure I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude
I normally think that alwways (or mainly) the symbolism is the thing that actually amtters most although it may seem irrelevant. Or in other terms... a symbolic change in the denomination goes a long way to force countires to adapt to the new paradigm..
I actually think that more movements to the euro would ahppen if some countires would adopt the symbolic measure...and announce it aloud...I personally ahv eno doubt about it....althought in principle ther eis no reason...
http://atimes01.atimes.com/atimes/Global_Economy/GE27Dj01.html
Oil is not priced in Dollars: Dollars are priced in Oil.
No deficit-based currency is mathematically sustainable in a world with finite liquid fuel resources, and the Euro is deficit-based. ie it would only put off the evil day.
Keynes had it right at Bretton Woods when he advocated an International Clearing Union - and others, such as Stiglitz and Monbiot advocate variations on that theme.
We need to start over, and I give the system between one and four years before it collapses totally. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
(I'll pass your request on to The Boss ;))
Damn that's quotable! -----sapere aude
What do you suggests is likely to happen that would prompt the celebration of "a new Bretton Woods" conference, and what makes you think that, if Keynes of all people couldn't get the International Clearing Union, anything sensible if going to be put in place next time around? Those whom the Gods wish to destroy They first make mad. -- Euripides
You need political will to make "sensible" happen, and you might get a horror designed by committee (see Kyoto Protocol). Those whom the Gods wish to destroy They first make mad. -- Euripides
