If everybody is debasing their currency,

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

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    Who Wins in the end?
     
  2. loosecannon
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    loosecannon Senior Member

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    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
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    Norman Gold Member

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    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
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    Toro Diamond Member

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  5. loosecannon
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    loosecannon Senior Member

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    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.
     

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