By Zero Sum I was pointing out that a Dollar in one place is a Dollar not in another, you cannot double a Currency value and have it in two separate places...
If One party spends $1,000,000 here it is not going to be elsewhere and adjustments have to be made, not by devaluing or borrowing more to offset the deficit....It doesn't make sense...

Take for instance yesterday I had $30.00 Cash in my pocket for the day's spending, well I went and purchased a 24 foot ladder ( which I needed ) on Credit for $300.00
Ok so that means I did not spend any money since it was on a credit card and I still had my $30 at the end of the day.....WRONG...with interest and handling fee's I will have spent more than the going out the door price and it will compound if I do not balance that deficit before the end of the month....

But on a larger scale is exactly how we around the world have been functioning for the last couple ( or more of decades ) The payback and all it's added fee percentages is what many did not understand...Credit is just an ability to offset a debt for a relatively short time period....It was never designed to be used on a revolving basis....It must be paid back before the deadline or else the creditor receives large interest ( usage ) Fee's and Banks are only to happy to do so, regardless of wether it is a person or an entire nation...
Talk to your Grandparents if you want an earful of that concept and what not to do...

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"C'est parti mon Kiki "

You can look back in history even further, the things we are talking about happened a few times already. Not always in the same region of the planet, though. "New economy" thought they had a cure for this sort of crisis and it's a big surprise to all economists to see all theory was wrong.

Cheers

David

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"Humans think they are smarter than dolphins because we build cars and buildings and start wars etc...and all that dolphins do is swim in the water, eat fish and play around. Dolphins believe that they are smarter for exactly the same reasons."