Why are we so divided?

Discussion in 'US Constitution' started by DGS49, May 1, 2017.

  1. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    My understanding is that if you devalue your currency to improve your exports and trade balance, then you also have diminished the standard of living for your citizenry cuz their money doesn't go as far[/QUOTE]

    Relative to import products, yes. But the living standard is bound to nosedive anyways if your export is hindered. A strong banking sector is known to be both good and bad, good because it can independently value the local currency, and bad because it destroys the living standard.[/QUOTE]
    It seems you are meandering all over creation. You started out saying that Currensy manipulation was extremely important to a nations wealth now you're saying it's merely a tool of some kind what does that mean exactly do you now understand that is not important that every country can manipulate his current sea and none can come out I ahead from doing it?
     
  2. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    Currency manipulation is an export tool and a loan tool. If you use it as an export tool, then you devalue your currency to the level of your industrial production. Obviously, the USA doesn't have the industry production to do that.[/QUOTE]

    My understanding is that if you devalue your currency to improve your exports and trade balance, then you also have diminished the standard of living for your citizenry cuz their money doesn't go as far[/QUOTE]
    Actually the USA has about 20% of the worlds manufacturing output which is just a little less than a had in the 60s 70s and 80s.
     
  3. anotherlife
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    anotherlife Gold Member

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    Relative to import products, yes. But the living standard is bound to nosedive anyways if your export is hindered. A strong banking sector is known to be both good and bad, good because it can independently value the local currency, and bad because it destroys the living standard.[/QUOTE]
    It seems you are meandering all over creation. You started out saying that Currensy manipulation was extremely important to a nations wealth now you're saying it's merely a tool of some kind what does that mean exactly do you now understand that is not important that every country can manipulate his current sea and none can come out I ahead from doing it?[/QUOTE]

    The industrial capacity and lending volume define the parameters of the manipulation of local currencies. Relatively between nations, you do get an advantage by devaluing your currency if you are less import dependent and more export dependent. Many Asian countries are in this category. The opposite is true for the US and Europe. This is very important I think because this is what determines the cross country migration of non automated jobs.
     
  4. anotherlife
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    anotherlife Gold Member

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    My understanding is that if you devalue your currency to improve your exports and trade balance, then you also have diminished the standard of living for your citizenry cuz their money doesn't go as far[/QUOTE]
    Actually the USA has about 20% of the worlds manufacturing output which is just a little less than a had in the 60s 70s and 80s.[/QUOTE]

    That is debatable, and I think it is a bundled figure, represents probably only cash flow, not actual sales volume to man hour.
     
  5. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    why is there an advantage??? If you export at low prices your wages then are low too. Low wages and poverty is an advantage?
     
  6. anotherlife
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    anotherlife Gold Member

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    Yes but like mentioned above, this results in poverty only in the absence of domestic production. This is why Asian living standards rise during Asian currency devaluation and in the same time western living standards fall with it.
     
  7. EdwardBaiamonte
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    EdwardBaiamonte Platinum Member

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    wrong!!! low export prices cause low wages and poverty. how domestic production is regulated and to what end is a different subject. Liberal govt might engineer low wages there too so everyone lives in poverty.
     
  8. anotherlife
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    anotherlife Gold Member

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    No because domestic production is what determines your dependence on import. The more independent of import you are, the more freedom you have about the currency valuation and living standard.
     
  9. Dragonlady
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    Shocked Canadian is an idiot who is being oppressed by the Canadian government, harassed by CSIS, and prevented from leaving the country because of his political stances.
     
  10. danielpalos
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    danielpalos Gold Member

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    Should, ShockedCanadian smoke pot and be more euphoric about being a Canadian, when about his chores?
     

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