If everybody is debasing their currency,

Discussion in 'Economy' started by Neubarth, Sep 30, 2010.

  1. Neubarth
    Offline

    Neubarth At the Ballpark July 30th

    Joined:
    Nov 8, 2008
    Messages:
    3,751
    Thanks Received:
    199
    Trophy Points:
    48
    Location:
    South Pacific
    Ratings:
    +201
    Who Wins in the end?
     
  2. loosecannon
    Offline

    loosecannon Senior Member

    Joined:
    May 7, 2007
    Messages:
    4,888
    Thanks Received:
    262
    Trophy Points:
    48
    Ratings:
    +263
    that depends on everything. Lots of commentary posted about that very question in another thread.

    First and foremost I would like to see China lose as in realize large depreciation of their reserves and be forced to break the yuan peg.

    But there is no way to predict the scope and direction of the fallout because there are so many potential ways in which global debasement could trigger unintended consequences.
     
  3. Norman
    Offline

    Norman Gold Member

    Joined:
    Sep 24, 2010
    Messages:
    9,271
    Thanks Received:
    1,568
    Trophy Points:
    280
    Ratings:
    +9,702
    Winners. (from most debasement coming to the least).

    1 US
    2 UK
    3 JAPAN
    4 Europe
    5 China

    That's my picks, in the END. The trade deficits and politics have a lot to do with it.

    On the other hand EUro might come before Japan.
     
  4. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    59,243
    Thanks Received:
    12,396
    Trophy Points:
    2,180
    Location:
    The Big Bend via Riderville
    Ratings:
    +36,691
    [​IMG]
     
  5. loosecannon
    Offline

    loosecannon Senior Member

    Joined:
    May 7, 2007
    Messages:
    4,888
    Thanks Received:
    262
    Trophy Points:
    48
    Ratings:
    +263
    Race to the Bottom

    He is describing classic mercantilism and the whole debasement meme is based on classic mercantilism. All of which is directly at odds with market liberalization and the export driven national economies within a globalized economy.

    I will say it again: nation states to globalization are like EU member states to the EU. Same inherent contradictions, same inherent weaknesses.
     

Share This Page