Word of the Day: Currency War



Also known as a competitive devaluation, a currency war is a condition where countries compete against each other to achieve a relatively low exchange rate for their own currency. As the price to buy a particular currency falls, so to does the real price of exports from the country. Imports become more expensive too, so domestic industry, and thus employment, receives a boost in demand both at home and abroad. However, the price increase in imports can harm citizens' purchasing power. The policy can also trigger retaliatory action by other countries which in turn can lead to a general decline in international trade, harming all countries. One of the most well-known periods of currency war and devaluation happened during the 1930's, where France, the UK, the US, and other countries devalued their currencies against each other in an attempt to steal market share away from one another.

Comments

  1. Alls good. Now bitch, bend over and let me bang your brains out. ;)
  2. Forex Trendy Can Help Traders in Taking the Right Decision. Is a software solution to avoid trading during uncertain market periods. FOREXSOFTWARESOLUTION[dot]COM
  3. THE FLOATING EXCHANGE CURRENCY RATE SYSTEM IS WHAT KILLS THE PEOPLE BUT MAKES THE MONEY CHANGERS RICH. LYNDON LAROUCHE HAS BEEN CALLING FOR A FIXED EXCHANGE CURRENCY RATE SYSTEM TO SAVE THE PEOPLE. JESUS CHRIST ONLY VIOLENT BEHAVIOR WAS WHEN HE KICKED OUT OF THE TEMPLE THE MONEY CHANGERS. TODAY THIS IS WHAT THE WORLD MUST DO IF IT WANTS TO SURVIVE.
  4. China owns US Treasuries. There is no collateral to US Treasuries. You can't demand land for them. You can't demand gold for them. You can only sell them for what they can get in US dollars. Their value has been rising for years now. China's leverage is very overestimated. If you trade goods for pieces of paper - you must really value that paper more than your goods.
  5. I think china enjoys other countries borrowing money so that they can both leverage payback schemes as well as see what they can get in exchange monetarily wise
  6. I wonder if some would benefit from a capital flight from Europe...
  7. @bweazel hey, so why do people everywhere keep saying that the Chinese owns us? Do you think its just to used as a fear tool?
  8. I post first.


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