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"In an ironic twist, political figures of each country are trying to depreciate their own currency. In theory, this strategy will give a short-term boost to their own economy, while handicapping foreign countries."
So how do all the currencies in the world devalue their currencies at the same time?
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"In an ironic twist, political figures of each country are trying to depreciate their own currency. In theory, this strategy will give a short-term boost to their own economy, while handicapping foreign countries."
So how do all the currencies in the world devalue their currencies at the same time?
This is basic economics, quite literally the first month of econ 101 drills it into every students head.
Cheaper currencies mean exports are cheaper and the economy sells more and employs more. Countries tend to see others devaluing their currency and don't want imports hurting local economies so they match it to some degree. The how is up to the country, the list is pretty comprehensive, but you can find it on Wikipedia or any textbook on the subject in about 10 seconds. Just as when companies cut the price of a product, others will match the price drop to some degree.
For some one who has been casually studying econ for a decade, and claiming just a few years is equal to a PhD with each post as a thesis, the failure to grasp something that students learn in the first month of econ 101 is baffling.
Quote:
Originally Posted by pie_row
Three of four years of casual study on my part runs close to a PhD by others.
...
The proof of what I have been spouting is good enough for a PhD thesis in economics.
The United States is not going to "win" a currency devaluation race.
Even if it could, it sure wouldn't help the average citizen at all.
"We" should be more focused on re-converting the purchase habits
of Americans (who spend the most) to bring them back to buying
American manufactured goods, made in the USA.
Making here, selling HERE, that is much more important than exports.
It is not necessary to debauch the dollar for that to occur, we only
need better laws to protect American companies who make goods here
instead of offshore, after all, what is our goal ? Who are we trying to
help here ? The people or the multi-national corporations ??????
The United States is not going to "win" a currency devaluation race.
Even if it could, it sure wouldn't help the average citizen at all.
"We" should be more focused on re-converting the purchase habits
of Americans (who spend the most) to bring them back to buying
American manufactured goods, made in the USA.
Making here, selling HERE, that is much more important than exports.
It is not necessary to debauch the dollar for that to occur, we only
need better laws to protect American companies who make goods here
instead of offshore, after all, what is our goal ? Who are we trying to
help here ? The people or the multi-national corporations ??????
In sentiment I agree with you but in reality it will never happened. Our leaders would have to rip up all the trade agreements that have been signed. And the multi nationals keep our leaders palms greased so they can win the next election and every Nov 4th we wave our flags and vote. Sorry for getting political in the economics forum but it was the only way to reply.
So how do all the currencies in the world devalue their currencies at the same time?
This is basic economics, quite literally the first month of econ 101 drills it into every students head.
Cheaper currencies mean exports are cheaper and the economy sells more and employs more. Countries tend to see others devaluing their currency and don't want imports hurting local economies so they match it to some degree. The how is up to the country, the list is pretty comprehensive, but you can find it on Wikipedia or any textbook on the subject in about 10 seconds. Just as when companies cut the price of a product, others will match the price drop to some degree.
...
Do you show an answer to the question I posed in what you wrote? How do all of them do it at the same time? Where is that in a text book?
Quote:
Originally Posted by Snowball7
The United States is not going to "win" a currency devaluation race.
We can't even fight a currency devaluation fight. Because countries are willing to make stuff and sell it at a loss to get USD for their foreign trade.
Quote:
Originally Posted by Snowball7
Even if it could, it sure wouldn't help the average citizen at all.
"We" should be more focused on re-converting the purchase habits
of Americans (who spend the most) to bring them back to buying
American manufactured goods, made in the USA.
Long term this is where we need to go. In the short term we need to get back to buying the excess production capacity of the world.
Quote:
Originally Posted by Snowball7
Making here, selling HERE, that is much more important than exports.
too true.
Quote:
Originally Posted by Snowball7
It is not necessary to debauch the dollar for that to occur, we only
need better laws
https://www.youtube.com/watch?v=FO725Hbzfls Unless you have honest politicians laws aren't worth the paper they are written on. We need a crop of statesmen not politicians.
Quote:
Originally Posted by Snowball7
to protect American companies who make goods here
instead of offshore, after all, what is our goal ? Who are we trying to
help here ? The people or the multi-national corporations ??????
If you say they need to do something about it they have already won as they are corrupt. You need to say I am going to do something about it. Or we are going to do something about it.
Quote:
Originally Posted by Swingblade
In sentiment I agree with you but in reality it will never happened. Our leaders would have to rip up all the trade agreements that have been signed. And the multi nationals keep our leaders palms greased so they can win the next election and every Nov 4th we wave our flags and vote. Sorry for getting political in the economics forum but it was the only way to reply.
There are things that we can do that don't violate our current agreements. We need to start working on getting those things done.
If you say they need to do something about it they have already won as they are corrupt. You need to say I am going to do something about it. Or we are going to do something about it.
Granted, any hope for change through the traditional election process appears finished.
We have not had truly protectionist politicians since Ross Perot and Pat Buchanan.
Even Ron Paul was not a protectionist. The people are simply too stupid to know
they are being screwed.
Quote:
Originally Posted by pie_row
There are things that we can do that don't violate our current agreements. We need to start working on getting those things done.
And continue to play on an unfair field ? Against intl. giants with limitless funds ?
Do you show an answer to the question I posed in what you wrote? How do all of them do it at the same time? Where is that in a text book?
There isn't an answer because your question doesn't make any sense.
When currencies devalue, they devalue relative to something else at a certain time (Definition - a decrease in the value of a country's currency relative to that of foreign countries). You just said they devalued and said all of the currencies did it, when it means between different currencies (or relative to commodities).
This is still basic as it comes economics, and no one who knows what devaluation means would be making this mistake.
Also when central banks try and devalue their currencies relative to others they announce it publicly, and it takes a while to do. That's like wondering why most every theater in the US was playing The Hobbit on the same day when it was promoted and announced months ago with the release date.
Last edited by EmeraldCityWanderer; 01-30-2013 at 06:03 PM..
Granted, any hope for change through the traditional election process appears finished.
Here is my take. This is an oversimplification so please bear with it. The rich have bought the government and they are getting what they are paying for.
On th other hand $10 per person for 1/3 of the population per year would equal the money spent in the four year election cycle.
Quote:
Originally Posted by Snowball7
We have not had truly protectionist politicians since Ross Perot and Pat Buchanan.
Even Ron Paul was not a protectionist. The people are simply too stupid to know
they are being screwed.
That isn't quite the way I would put it. The people do what they are told to. Vote for him/her he will give you a better life. Well thinking for your self has gone out of fassion.
Quote:
Originally Posted by Snowball7
And continue to play on an unfair field ? Against intl. giants with limitless funds ?
Why not? We live in a manipulated economy. So why not manipulate it in the vast bulk of the people's favor.
Quote:
Originally Posted by pie_row
So how do all the currencies in the world devalue their currencies at the same time?
Quote:
Originally Posted by EmeraldCityWanderer
There isn't an answer because your question doesn't make any sense.
Did you read the link? "In an ironic twist, political figures of each country are trying to depreciate their own currency. In theory, this strategy will give a short-term boost to their own economy, while handicapping foreign countries." How do they all do this at the same time? All the countries at the same time want to devalue their currencies.
Quote:
Originally Posted by EmeraldCityWanderer
When currencies devalue, they devalue relative to something else
OK my point exactly. If we were on the gold standard then all the currencies could change the amount of gold they are worth at the same time. All economies have labor in common. They can all change the nominal value of their labor at the same time.
Quote:
Originally Posted by EmeraldCityWanderer
at a certain time (Definition - a decrease in the value of a country's currency relative to that of foreign countries). You just said they devalued and said all of the currencies did it, when it means between different currencies (or relative to commodities).
(I didn't say they did it, I asked how do they do it. And quoted someone saying they are trying to do it.) Or labor.
Quote:
Originally Posted by EmeraldCityWanderer
This is still basic as it comes economics, and no one who knows what devaluation means would be making this mistake.
The mistake was yours not mine. I asked how do they all do something. I didn't say they all did it. I quoted someone saying something that is generally what is meant by putting something in
Quote:
””
marks. For giving me so much dodo over small stuff you really missed a big one or a small one.
Quote:
Originally Posted by EmeraldCityWanderer
Also when central banks try and devalue their currencies relative to others they announce it publicly, and it takes a while to do. That's like wondering why most every theater in the US was playing The Hobbit on the same day when it was promoted and announced months ago with the release date.
Did you read the article? You should try doing that before you comment on something.
Three of four years of casual study on my part runs close to a PhD by others.
...
The proof of what I have been spouting is good enough for a PhD thesis in economics.
For some one who has been casually studying econ for a decade, and claiming just a few years is equal to a PhD with each post as a thesis, the failure to grasp something that students learn in the first month of econ 101 is baffling.
Could you please quote where I said I was casually studding econ for a decade? Or apologies for miss representing what I was saying?
It would be nice if you actually read what you quoted. The proof of what I have been saying is good enough for A PhD thesis. These pitiful posts are not.
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