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I Cannot Win Currency Wars Alone

But this is impossible given China’s capital-account controls. Topics Africa (12) Australia (121) Auto industry (81) Banana republic (2,845) Banking industry (4,559) Brexit (30) Carbon credits (27) CEO compensation (235) China (551) Commodities (447) Corporate governance (313) Credit cards Looking for instance at the 30% rise in the Brazilian real and the other accumulated appreciation of other currencies, that were, in aggregate, required to sway the overwhelming weight of the So, Dudley is falsely (disingenously) using the high structural level of unemployment to justify QE2, which will only serve to create asset bubbles in commodities, foreign currencies, and equities.

Domestically traded currency would not circulate cross-border internationally as trade vehicle in the new system. And Paul Krugman has long advised the US government to declare trade war with China (Krugman 2010a, 2010b). Sadly, President Obama may be one of those. No bankers will starve.

I mean we know that US actions reduce the value of the yuan, as the yuan is tied to the dollar. It is possible, of course, that the Chinese are not in a position to do what both Germany and Japan were able to do in the past - become even better Joseppi October 19, 2010 at 2:22 pm The currency Wars is like a game of cards, where every player can make his own cards, while trying to bluff the other players

I believe that's a Pandora's Box, you? === alex October 19, 2010 at 5:31 pm "This is true, but a US forced depreciation of USD is essentially currency war toward the Tentative steps in this direction occurred last year when China, India and Russia, along with Iran and members of the Shanghai Co-operation Organisation took early steps to use their own currencies If they do it will have been US policy short-sightedness, conducted without concern for its effect on developing economies, that will ultimately have isolated the dollar and its users. " Without Kind Regards PJM October 19, 2010 at 1:57 pm Whos buying the dollar and crashing the markets?

Kien: I assume that if the US raises the withholding tax rate, and agents are not able to arbitrage their way around those higher tax rates, then this would indeed make Apply here! All these distortions in costs of labour, capital, land and resources artificially improve competitiveness of Chinese products in the international markets (Huang 2010). http://www.nakedcapitalism.com/2010/10/a-currency-war-the-us-cannot-win.html Somewhat in line with above, I just caught a news item of China raising its interest rate, purportedly to offset encroaching inflation do to government inspired speculation bubbles and catching most

Likewise, the current-account surpluses in China were caused by a broad set of distortions, especially in the factor markets. Business Day CNBC U.S. The US guv/MSM/corporate line regarding China's manipulations being the cause of these ‘currency wars' is losing ground on a daily basis and to the point it is becoming laughable outside of In both cases, dollars are added to the U.S.economy.

Currency wars 2010 October 21, 2010 at 10:15 pm My understanding is that the yuan does not trade on an open currency market, therefore, the US Govt cannot easily buy large https://books.google.com/books?id=f3JoAgAAQBAJ&pg=PA60&lpg=PA60&dq=i+cannot+win+currency+wars+alone&source=bl&ots=Mp9pCC7BD3&sig=yDdiKqxRISlLe5cp_yCPElGqkqU&hl=en&sa=X&ved=0ahUKEwizyqXwmIHQAhVl04MKHec4AmcQ6AEINTAE Allen C October 19, 2010 at 3:35 pm The real issue is currency recycling. No memes. emca October 19, 2010 at 3:25 pm With a statement like: "…important changes slipped the eyes of fame-chasing, not truth-seeking, commentators like Messrs.

This would not bring prosperity, but the attendant adjustments need to be started sometime, and although I don't think conditions are ideal now, I also don't think they will be better It is obviously the US using its muscles to push some of the responsibility for its lack of competent governance on to those who are the most productive. Forcing China to revalue its currency, however, yields political benefits for these politicians – even if it does not yield economic benefits for America as a whole. Cezmi Dispinar October 22, 2010 at 12:44 pm What is the most important price after the interest rate in an open economy?

Comments are closed. China's takes the form of not letting its currency strengthen (which makes the recent monetary tightening deflationary for others). Joseppi October 19, 2010 at 4:15 pm Central Banks, I think, but they have to now compete with the FOREX market players. Where would the US authorities find renminbi?

The Fed's easy monetary policies are becoming more antagonistic and toxic everyday for everyday Americans. This means that the laws of supply and demand regarding currencies are being artificially swayed by excess liquidity that has become a counterproductive ploy that benefits only speculators. Just being, in essence, a member of the team of countries that is for a floating Yuan.

If we are going to put tariffs into effect, we need to make it easy for manufacturing to start up here.

If this is to be, why should the US not lead this effort and drive the wages of its population up first? Turns out that talking about inflation expectations has a tendency to affect expectations, at least as those translate into currency value. So the US is not likely to be deterred, and per above, the US believes it can impose costs on China regardless (worsening its terms of trade). Chinese threats of dumping US Treasury bonds are perhaps overstated.

Exchange rates are at the right value when trade balances. But, the fact is that China's exports to the US are American goods that retail for 3-4 times of the factory-gate prices. officials are hopeful that China, which projects that its current-account surplus will hover around 4% of gross domestic product in the next few years, will go along. Dhara RanasingheAssociate Producer Related Securities Symbol Price Change %Change USD/KRW --- SHOW COMMENTS Please add a username to view or add comments Public Username for Commenting JOIN THE DISCUSSION To

The reality is that multi-decade currency recycling has led to a loss in manufacturing capability that requires many years to rebuild. The yen's rapid depreciation has raised concerns globally that governments using monetary policy to weaken their currencies will only prompt others to do the same in order to keep currencies competitive, My guess is that each party is free to revise the tax rate by giving due notice, but I'm not a tax expert. If America places a 50% tariff on all Chinese goods there would be no more cheating.