Entre nous, China worries me

I remember being very impressed by Fort Dunlop whenever driving by on the M6. I worked in Fiat England on the Great West Road when many other wonderful buildings were still in use for their original purpose.

The problem with reserve currencies known as the Triffin Dilemma might be of interest. US exports itself inflation and imports everything else. Hence moves from biggest creditor nation to biggest debtor nation, the predicted collapse of manufacturing in the West all contained in Triffin’s Dilemma from 1959.

1 Like

Interesting. I didn’t know about Triffin but have just read the Wikipedia page.

Especially interesting that Zhou Xiaochuan proposed going back to Keynes’ original plan for a reserve currency separate from national currencies - ( ‘on almost every point where Keynes was overruled by the Americans during the Bretton Woods negotiations, he was later proved correct by events’) - and that in fact the world does seem to be gradually adopting Zhou’s proposal.

I’m surprised the article I linked - by a professor of economics and public policy at Harvard and former IMF chief economist - didn’t broach this.