Inflate our way out of debt by massive quantitive easing? This will also counter the artifically low yuan and help exports as well.
This will also discourage excessive importing.
This will also discourage excessive importing.
Why not devalue the US currency?
- Thread starter KINGOFSHORTS
- Start date
M
morganist
it will damage the value of investments. pension savings would be worth less and you would have pensioner poverty.
Because so many of the goods sold and consumed in the U.S.A., especially of the durable, expensive variety, such as cars, appliances, electronics, etc., are imported, debasing the dollar will turn large swaths of the country into impoverished regions resembling Calcutta.
Brother, can you spare an imported, Mexican or Chinese made car part so that I may get to work?
Brother, can you spare an imported, Mexican or Chinese made car part so that I may get to work?
it will not happen, because the FED holds half of the total U.S. debt. The people who make that kind of decision own the FED.
http://upload.wikimedia.org/wikiped...f_US_Treasury_securities_by_category_0608.jpg
http://upload.wikimedia.org/wikiped...f_US_Treasury_securities_by_category_0608.jpg
Quote from Corelio:
With all due respect....where have you guys been? We have been devaluing the US Dollar for years now.
:eek: :eek:
Everything is relative, and not all is as many would have you believe, assuming you haven't been keeping an eye on nearly every major trading partner of the U.S. manipulating the hell out of their own currencies to stave off their own economic implosions.
In fact, this has 'allegedly' been the source of major trade friction between China and the U.S., as the U.S. has repeatedly accused China of massively devaluing the Renminbi, at least for public consumption back stateside.
I would rather the US adopt a sustainable trade policy and let the marketplace decide the "correct" valuation for the dollar.