there goes EJ's new-new deal theory...

[phirang]

http://news.theage.com.au/asian-nations-agree-to-currency-swap/20080505-2axb.html

[zmas28]

http://news.theage.com.au/asian-nations-agree-to-currency-swap/20080505-2axb.html

Sorry, don't see the connection with EJ's new new deal theory?

[phirang]

Sorry, don't see the connection with EJ's new new deal theory?

the myth that asia will sit idly by while the US steals its market share... also, that asia will let a weak dollar crush their exports etc.

[FRED]

the myth that asia will sit idly by while the US steals its market share... also, that asia will let a weak dollar crush their exports etc.

Where in New New Deal theory is the idea that Asia lets the weak dollar crush exports?

[phirang]

Where in New New Deal theory is the idea that Asia lets the weak dollar crush exports?

Export to whom? You think China, Germany, Japan, and South Korea will sit idly by while the US pushes reboot on its economy???

[FRED]

Export to whom? You think China, Germany, Japan, and South Korea will sit idly by while the US pushes reboot on its economy???

EJ writes in:
As I have said for many years, the long term trend of increased trade among US trade partners will accelerate as the FIRE Economy winds down and the US economy goes through transition. This is not to be confused with the more recently coined term "decoupling" which expresses the belief that the transition will be smooth. It will not. For one thing, the international monetary system is US-centric; truly multilateral trade with respect to flows will not fit within it.

The US post New New Deal relies more on exports of high intellectual property rights IP based products. These will be competitive because they will have been invented in the US.

[metalman]

EJ writes in:As I have said for many years, the long term trend of increased trade among US trade partners will accelerate as the FIRE Economy winds down and the US economy goes through transition. This is not to be confused with the more recently coined term "decoupling" which expresses the belief that the transition will be smooth. It will not. For one thing, the international monetary system is US-centric; truly multilateral trade with respect to flows will not fit within it.

The US post New New Deal relies more on exports of high intellectual property rights IP based products. These will be competitive because they will have been invented in the US.


can you break that down? i can see what your saying that the usa needs to compete in biotech and high tech etc. but i don't get how the flows work. in terms of $$$ the us earns more from selling low ip stuff and spends a lot (import) high ip stuff. at least that what shows up on the dept of commerce site.

[phirang]

Germany and Japan have plenty of good IP, too...

What I COULD see is a mother of all arms sales, but US weapon systems are still too expensive for anyone but our richest creditors.

[touchring]

where's the link to the new new theory again? if i haven't remembered wrong, it is about renewable energy? :confused: