David Roskoph

The U.S. Is Losing the Economic Cold War

A title of Losing the Economic Civil War would be more appropriate because we have won the Economc World War. Although we are paying for the irrational exuberance of an overextended credit line again, we have assuaged the world to reject the formidable lure of Communism for Captialism.

Yes Virginia, we are bankrupt and this is a Modern Depression, however, we will recover much more quickly than anyone is anticipating and stay atop the globe, for now. Isn't it obvious that decoupling has not occurred, even though international trade is at its zenith? We remain the shining model of 21st century capitalism, somewhat different than the 20th century version.

Now that model will be amended and (hopefully only temporariy) the government will measure aggregate risk and compensation via a forced seat on the board of major employers. That is a consequence of allowing the market to be a bit too free.

Look around and see that capitalism is spreading to fill the void of chaos and Communism. That is the real dividend of the Cold War Ronald Reagan won. We have survived this visit to the abyss for precisely that reason.

We are committed to dillute our currency to reflate the overextension and a fallinig dollar should be axiomatic, right? Global support for our dollar confirms that we have indeed won and, despite the obvious dillution, we remain the model that the world aspires to.