Fair value

How often has something positive come out of distressing times. The current recession will hopefully bring in a much required correction to the international monetary system. Over the last 3-4 decades the whole world had sustained an uncontrolled US borrowing and it was unfair, but whats the alternative ?

A janitor in US has probably a better lifestyle than an Indian engineer. Given that a fair society should reward you based on your output, this imbalance was not sustainable in a globalized and interdependent world .

China is now proposing a common synthetic currency whose value is determined as a weighted average of the dollar, euro, yen and pound.This is as fair as it can get , when dollar will cease to be the common currency to settle international trade , its demand will fall and it will then be rightfully valued. Whether it will come to pass is a different question, will US let it happen ?. If not today then definitely in the coming days we will see increased momentum towards this idea

Another fairly predictable thing when in a tight spot is to be cautious, how else would you explain the wave of protectionism sweeping the western capitalist strongholds. As someone said Capitalism is still the way to achieve socialism as exemplified by Scandinavian countries, they have one of the best social security systems. It is still the most efficient way to manage economic needs.