Hi There !

This is a long question, but it requires a short answer.  :-)

Peter Drucker was interviewed in Fortune last month.  While I agree
with 97% of his opinions, two things confused me:


(1)  The biggest problem I see is our total dependence on foreign
money to cover our government debt. Never before has a major debtor
country owed its debt in its own currency.

(2)  There is an enormous amount of surplus capital in the world for
which there is no productive investment. The supply greatly exceeds
the demand. So there is a very jittery body of excess money that is
desperately in need of returns, and it could become panic-prone. We
have no economic theory or model for this.


A 5-star answer would be 1-2 sentences on each of these three questions:

(1)  Are there other debtor countries in history which have owed their
debt in their own currency?
(2)  If a country owes its debt in its own currency, isn't that a good
thing and not a bad thing?  If it's a good thing, why is Drucker
concerned?
(3)  How can the world have "excess capital"?  Don't human beings,
governments, and corporations always have 1000+ projects they would
undertake if they only had the cash?


No web sites or sources required.   Just your opinion.
(Even if you cannot find an answer to #1---the history question---
answering #2 and #3 would still warrant five stars.)

All comments greatly appreciated!

ron