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| Economy |
| Currency wars are necessary if all else fails |
| 2010-10-11 |
| The overwhelming fact of the global currency system is that America needs a much weaker dollar to bring its economy back into kilter and avoid slow ruin, yet the rest of the world cannot easily handle the consequences of such a wrenching adjustment. There is not enough demand to go around. |
| Posted by:tipper |
| #3 Currency Wars are just Trade Wars by other means. |
| Posted by: Procopius2k 2010-10-11 23:08 |
| #2 It's wrong to characterize this as an American problem. Currency imbalances are always symetrical problems. China's problem, is that it sells something for a dollar and only gets 80 or 90 cents (in Yuan terms). BP is mostly right, because currencies mostly affect manufacturing exports and hence manufacturing employment, which these days is only 20% or so of total employment. BTW, this is a bigger problem for the Euro, where Germany is exporting like crazy at the expense of the Clubmed members. |
| Posted by: phil_b 2010-10-11 21:06 |
| #1 Warning AEP is a bit of a fool. Currency wars are "wars" to lose purchasing power of you own currency! Don't let propaganda fool you into thinking the economy is about exports. It 99% inter-person commerce and that's FUCKED* by you current tax regime which punishes everything but rent-seeking. *No apologies for swearing. |
| Posted by: Bright Pebbles 2010-10-11 16:20 |