the actual “currency” we’re talking about that has caused the problem was not gold or grain or dollars/yen/euros but rather mortgages–specifically american mortgages.

these were used to fuel a stealth lyndon johnsonesque “great society” (about 25% of the bad mortgages were from illegals).

The bill for all the bad mortgages came due at once.

What the derivatives market did was hedge the risk worldwide. So people in all parts of the world got stuck with the US bill. (My understanding is that the bankrupsy of lehman bros cost europeans 300 billion.)

The democrats therefor are–on track to get the best of all worlds: their program is paid for, the republicans get the blame for democrat induced recession, more government will be the result. Specifically more international government.

After all if american mortgages can’t be trusted whose mortgages can be trusted. Because americans can’t be trusted to regulate their own markets–therefor international bodies will take on the job.

Anyhow, that’s my wag as to what Sarkozy is up to.

I’m not in favor of the US giving up more sovereignty to international institutions. Rather I would be in favor of US banks stop giving out loans to people who can’t afford them. As well I would be in favor of the US getting off dependence on foreign oil yesterday.