Free Trade and third world economies, page-2

  1. 2,070 Posts.
    Very good point.

    If the entire world was working to capacity, competing or at least producing each country's natural advantage products and trading, the world economy and markets would be much larger.

    Instead most countries are producing low tech nicnacks or raw materials for a few leading countries especially the US. This keeps them dependent but leads to trade deficits that are milking the leading countries especially the US.

    In response because they don't want to lose their status the US has carefully and deliberately made the US$ the global currency of trade and artificially held the US$ at a high exchange rate. This makes US product unaffordable outside the US and the largest US export now is copyright!

    Now the domestic US market is tanking but the US$ is still held artificially high, the US is in big trouble. No wonder Bush wants distractions and nationalist causes.
 
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