quasi, i read it and i think he's right- especially this part from the very end of that document:
IN NOVEMBER 2002 JAMES KENNETH GALBRAITH WROTE AN ARTICLE
TITLED THE UNBEARABLE COSTS OF EMPIRE
NONE OF THESE PROBLEMS WILL BE CURED SO LONG AS WAR
REMAINS OUR DOMINANT POLITICAL THEME. BUT SERIOUS
THOUGH THEY ARE, THEY PALE IN COMPARISON WITH THE
LARGER PROBLEM OF THE INTERNATIONAL TRADE-ANDFINANCIAL
ORDER UNDER CONDITIONS OF PERMANENT WAR.
IT IS A STRAIGHTFORWARD FACT THAT IF GLOBAL OIL
PRODUCTION STARTS TO DECLINE BUT U.S. CONSUMPTION
DOES NOT, EVERYONE ELSE WILL BE REQUIRED TO CUT
PURCHASES AND USES OF OIL. BUT HOW CAN OIL PRICES BE
HELD STABLE FOR AMERICANS YET BE MADE TO RISE FOR
EVERYONE ELSE? ONLY BY A POLICY OF CONTINUING
DEPRECIATION IN EVERYONE ELSE'S CURRENCY. SUCH A
POLICY OF DOLLAR HEGEMONY AMID WORLDWIDE FINANCIAL
INSTABILITY, OF CRUSHING DEBT BURDENS AND DEFLATION
THROUGHOUT THE DEVELOPING WORLD, IS PERVERSE. IT
WILL MAKE OUR TRADING PARTNERS' EXPORTS CHEAP,
RENDER THEIR IMPORTS DEAR AND KEEP THEIR REAL WAGES
53
LOW. IT WILL PRICE AMERICAN GOODS OUT OF WORLD
MARKETS AND LEAD TO UNSUSTAINABLE DEPENDENCE ON
FOREIGN CAPITAL. IT WILL BE A POLICY, IN SHORT, OF
BEGGAR-ALL-OF-OUR-NEIGHBORS WHILE WE LIVE ALONE, IN
INCREASING IDLENESS AND INSIDE THE DOLLAR BUBBLE.
THIS IS THE POLICY THAT BUSH AND CHENEY ARE ACTUALLY
IMPOSING ON THE REST OF THE WORLD. BUT THEY CANNOT
MAKE IT LAST. IT WILL MAKE LIVES MISERABLE ELSEWHERE,
GENERATING EVER MORE RESISTANCE, TERRORISM AND
MILITARY ENGAGEMENT. MEANWHILE, WE WILL NOT
EXPERIENCE EVEN GRADUAL EXPOSURE TO THE CHANGING
ENERGY BALANCE; WE WILL THEREFORE NEVER MAKE THE
INVESTMENTS REQUIRED TO ADJUST, EVEN EVENTUALLY, TO A
WORLD OF SCARCE AND EXPENSIVE OIL. IN THE END,
THEREFORE, THAT WORLD WILL ARRIVE MUCH MORE
ABRUPTLY THAN IT OTHERWISE WOULD, SHAKING THE
FRAGILE EDIFICE OF OUR OIL ECONOMY TO ITS FOUNDATIONS.
AND WE WILL SOMEDAY FACE A DOUBLE EXPLOSION: OF
ANGER AGAINST OUR ARROGANCE AND OF ACTUAL
SHORTAGE AND COLLAPSING LIVING STANDARDS, WHEN THE
CONFIDENCE OF INVESTORS IN THE DOLLAR FINALLY GIVES
WAY.
COMPARED WITH THIS FUTURE, A NEW COMMITMENT TO
COLLECTIVE SECURITY, TO A NEW WORLD FINANCIAL
STRUCTURE, TO A RATIONAL ENERGY AND TRANSPORTATION
POLICY, AND TO SPENDING TO MEET OUR ACTUAL DOMESTIC
NEEDS WOULD BE A BARGAIN.
i think he's right, but what has been going on with the dollar has been the reverse- weakness. but i think this was planned on purpose to get japan to finance our debt in order to keep their yen from appreciating too much. china saw this- that's why they're not going to remove the peg on the yuan anytime in the foreseeable future or else they will also be slaves to the dollar...
SP
