Chai-on:
Imagine what happen to the US-Japan relationship. Japan has earned a =
lot of US e-money by exporting hard labored goods. =20
If the Japanese people want to use the E-money, then they have to import =
the US goods. Over import leads to more unempolyment for the Japanese. =
Unless they are more powerful militarily than US, they can never get =
back what they earned. They have to spend the money within US. Yes, =
maybe they can buy the government itself by manipulating the US voters =
with money. It has the physical power anyway. If we cannot have such a =
physical power, I would prefer the cash, the commodity money. =20
=20
Paul C
This is more or less the situation which exists
already.
It is bound to be the case if a country runs a
sustained trade surplus. What Japanese firms have
acquired is interest bearing assets denominated
in dollars. These are in practice already electronic.