Mercantilism to be successful and to continue in a fiat currency environment requires a strong and consistent efforts to cheapen the currency. Japan is the best example; however, sooner or later (even for Japan) the economy corrects for these manipulations one way or the other.
Presently, China believes the path to success lies in exporting more than they import. Every nation's dream but every citizen's nightmare.
To: shrinkermd
The reality of market economics...not even commies can hide from it.
To: shrinkermd
Presently, China believes the path to success lies in exporting more than they import. Every politician in the world loves exports and a weak currency. It must be a collective brain tumor they all share.
But it is good to see an article that's gets the cause of inflation correct, rather than the usual and incorrect scapegoat of economic growth.
3 posted on
09/02/2007 6:38:40 PM PDT by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: shrinkermd
Every nation's dream but every citizen's nightmare.I had an MBA prof who said that a trade deficit is a great thing. We put some green ink on paper and they give us TVs for them...
5 posted on
09/02/2007 8:05:50 PM PDT by
Onelifetogive
(* Sarcasm tag ALWAYS required. For some FReepers, sarcasm can NEVER be obvious enough.)
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