Friday, May 14, 2010

We’re Not Greece

http://www.nytimes.com/2010/05/14/opinion/14krugman.html?partner=rss&emc=rss

---------- Forwarded message ----------
From: barry levine 
Date: Fri, May 14, 2010 at 9:13 AM
Subject: re: We’re Not Greece
To: letters@nytimes.com


To the Editor:
    Professor Krugman lays out beautifully why the debt burden of the U.S. isn't like that of Greece. He stops short however of the larger structural lesson. Control of our currency is an important aspect of a sovereign state. Greece is hamstrung--unable to devalue its currency to redress the current imbalance--because the value of the Euro is beyond the Greek state's control.  Likewise the US has surrendered control of our currency to the Federal Reserve. The Fed is trying to serve two masters. Often it can make a profit for its constituent banks and stabilize the finances of the U.S. That's not good enough. As a sovereign nation, the U.S. needs control of its currency.
Barry Levine

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