Pool Clearing as Solution to the Triffin Dilemma 🤝 #efschumacher #ndp #worldtrade

The Triffin Dilemma is a consequence of the US dollar, a local currency, being used as an international currency for world trade and investments. This is because each country has a different level of productivity. We restore fairness through a clearing mechanism that balances the differences in each country's productivity levels in trade. This was proposed by economist Fritz Shumacher as Pool Clearing: In Pool Clearing every country sets up a National Clearing Fund and agree on set exchange rates. Importers pay into their own National Clearing Fund using their own currency. The exporter’s Clearing Fund is informed that payment has been received and pays the exporter. Each Clearing Fund thus receives and disburses only national currency. It receives such currency from the home importers and disburses it to the home exporters. This prevents trade deficits by constantly adjusting the exchange rates so that each country will have a stable level of purchasing power. A wealthy country will have more purchasing power than a poor country but it does not have to come at the expense of the poor country! Unlike the Economic system that focuses on private profits and GDP, the Supereconomic system focuses on purchasing power and NDP or Net Domestic Product!

Added 9 Jul 2026