Posted on 12/11/2006 7:10:05 PM PST by GodGunsGuts
Either that, or he's trying to warn us what's about to happen.
Everybody who is thinking clearly knows that when you say commodity based currency you really mean commodity based economy? That's funny.
After all, you have already agreed to translate my words into your native tongue--Pollyanish.
Translating idiot into English is getting tiring. Why don't you try English for a change?
the chinese peg must be broken. no matter what it takes. the problem for Paulsen & Bernanke, is that they are not only fighting the chinese, but US companies that want to maintain china as an artificially low cost area for them to relocate US manufacturing and technology to.
this should have been dealt with long ago.
its stable because their current account deficit is stable. you don't have the wild swings associated with the dollar accumulation flows in asia, propping their currencies up because exports to the US are the only things holding up their economies.
==Translating idiot into English is getting tiring.
Thanks for explaining how your thought process works. I always wondered why you couldn't properly interpret what is right in front of your nose. Little did I know that it was just your thoughts getting lost in your own translation of yourself.
==this should have been dealt with long ago.
Such as never opening up our markets to our Chicom enemies in the first place.
no WTO with a currency peg.
What's to explain? Don't you know what the balance of payments means???
Don't you know that there is no "balance of payments deficit"?
they do not have voracious consumers like we do, a "disposable" society. you buy an appliance from a european manufacturer - it lasts 10 years. in the US, I buy a new crap chinese made coffee maker every 2 years when the heating element fails.
suffice to say, europeans do not consume like americans do. it hurts them in many respects - they (like japan) don't have high consumption of internal services either, and as you see in the US, its our internal service economy that generates all our job growth - and you can't export those jobs.
You don't have to wonder.
But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.
Of course, the U.S. government is not going to print money and distribute it willy-nilly (although as we will see later, there are practical policies that approximate this behavior).............The fact that the Fed bears no credit risk places a limit on how far down the Fed can drive the cost of capital to private nonbank borrowers. For various reasons the Fed might well be reluctant to incur credit risk, as would happen if it bought assets directly from the private nonbank sector. However, should this additional measure become necessary, the Fed could of course always go to the Congress to ask for the requisite powers to buy private assets.
Ben "The Helicopter Commander" Bernanke - Deflation, making sure it doesn't happen here.
No there isn't.
If you mean the balance of payments must always be equal, that's only true in a strictly book keeping sense.
Yes. In the sense that 100=100. In the sense that 0=0. In the sense that balance means balance.
But you can have specific kinds of deficits within the balance of payments,
Hooray!!! Took less than 3 months for you to figure out that the line in the article, "weighed by the U.S. balance of payments deficit" was incorrect.
I would have referred to the current account deficit.
Which would have been correct. Glad I finally got you to understand the idiocy of the article. There may be hope for you yet. In the meantime, I'll continue to point out when you say or post inaccurate financial data.
I said nothing about US goods. asian goods, chinese ones specifically, are inferior to European and US and Japanese goods.
buy some french made glassware, then buy some chinese made stuff. sure, the french stuff costs more. buy a makita or porter cable drill, then buy a chinese drill from sears. european clothing is the best in the world. so are their large home appliances.
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