[OwenKellogg]

>>> Japan, circa 1946 until today (compared to pre-ww2 values). <<<

Are you saying that Japan found prosperity by devaluing their currency?


>>> Is it "conservative?"

Yes, in the sense that it is Nationalistic to subsidize your exports and penalize the imports of comeptitor nations. <<<

Southack, subsidies and tariffs to manage trade are not conservative values. You are espousing liberal policies!

[Southack]

"Southack, subsidies and tariffs to manage trade are not conservative values. You are espousing liberal policies!"

No, no, and no.

Devaluing your currency is a *stealth* subsidy. It makes your exports cheaper even though there are no direct payment subsidies. This is nationalistic, not liberal.

Likewise, devaluing your currency makes your imports from competitor nations more expensive, yet there is no actual, direct tariff involved. Again, this is Nationalistic.

Nor do you have much of a choice in a global economy. You can play the ostrich and pretend that because there are no overt, direct subsidies or tariffs that you are somehow espousing free market Capitalism, but the hard, cold, cruel reality is that your global competitors are going to seize upon such naivity by using their own resources and tricks to manipulate *your* currency to your entire nation's detriment. This is precisely what China is doing by hoarding $500 Billion in U.S. Dollars. It props the Dollar up higher than its natural free market value would ordinarily reside.

The other choice is to play the same game by attacking competitors' currencies via devaluing your own.