Re: Currency and Seigniorage

On 27-Nov-2003, Hasdrubal Hamilcar <[EMAIL PROTECTED]> wrote:

> >>Someone wrote on counterpunch that every drop of oil sold in the world
> >>is an indirect subsidy into the pockets of the American consumer,
> >>because of the effect it has on propping up the dollar.  Imagine if the
> >>dollar was not supported by Saudi oil: the dollar would instantly fall
> >>to the level sustained by US exports and imports, imports from China
> >>would become prohibitively expensive, and the US would be able to buy as
> >>much as it exports.
> >
> >
> > Did he explain the logic behind this argument?
>
> I'm sorry the "Imagine..." part was my own.  The authors piece is only
> quoted in the first sentence.

OK.  Maybe you can remember his logic.   Sure any production of oil, books,
wheat, or whatever supports currency, but he seems to be singling out one
particular product produced around the world and one particular currency.

Could I say every single peppercorn in the world is an indirect subsidy into
the pockets of the American consumer because of the effect it has on
propping up the dollar?