Hi Bill,ALthough currency-issuing gemvrnoents aren't going to default on their debts (unless they choose to), do you think that certain countries (such as the US) with very large and growing trade deficits might eventually face a harsh balance of payments crisis? It seems to me that the longer these large trade deficits are allowed to grow, the worse the potential for a serious currency crisis becomes, especially as deficit countries become increasingly dependent on imports. Not addressing this potential problem whilst pursuing gargantuan compensatory budget deficits might be a bit like putting a sticking plaster over a badly infected wound. This deficit-spending approach might be fine if the inherent rebalancing mechanism of floating currency exchange rates was allowed to operate, but at present this is being subverted by currency manipulating countries such as China. I just read Godley's paper  seven unsustainable processes  where he points to this as the greatest potential future threat to the US economy. Nowhere does he mention that the US might default on its debts   why should it? But he makes the case that this might not even be relevant in the case of a sudden and dramatic fall in the value of the dollar. What do you think?
a1Hola Karis!Lewis the Lion is glad that you enjoyed<a href="http://pbwlkcedmf.com"> redniag</a> about the mine. It certainly made him realise what a lucky lion he is and indeed he felt very sad for some of the miners who don't have a choice whether they work down the mine or not.At the moment, Lewis has been travelling for 5 months which means that there's still another 7 months to go on his adventure. (Check out the map on the homepage to see where he's going to travel to next on his big adventure. Just a little clue though   it's a place where there are enormous stone heads looking out to sea!). That means he should come back to visit you in Packmoor next February or March time. I wonder how many more adventures you are both going to have before then?!Muitas felicidades, Lewis the Lion and Helen

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