[SPORK] Deconstructing Iraq: not oil per se... just plain economics.

Adam L. Beberg beberg at mithral.com
Tue Apr 15 22:01:10 PDT 2003


On Tue, 15 Apr 2003, James Rogers wrote:

> The number of currency users is pretty immaterial to the power of a
> currency.  Take China, for example.  The economics behind the currency have
> much greater weight than the number of users.  The number of users is just a
> rough indicator of the size of the economy that is backing a currency.

Europe has a healthy and educated middle class, we're not talking about
adding poor 3rd world users to the Euro, like Canadians or something ;)

> I'm not sure exactly what this is referring to.  The average EU debt-GDP
> ratio appears to be modestly higher than the US, and the major economies in
> the EU individually don't look any better than the US.

The average american has something like 8k in unbacked debts, above and
beyond the hard debts like houses and cars. I'd love to get ahold of a GDP
number minus the amount that's paid for with nothing but bits. Only problem
with that is that it can't go on forever.

> There are a few economies that look interesting around the world, but the EU
> as a whole isn't one of them (though countries like Ireland catch my eye).

It doesn't have to be interesting, just has to have more users and not be an
ocean away from 90% of the world population.

- Adam L. Beberg - beberg at mithral.com
  http://www.mithral.com/~beberg/



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