Vietnam Devalues Dong by 2% to Fight Inflation

Earth Times ^ | 6/11/08 | DPA

[Redcloak]

There’s pills they can take for this sort of problem.

[Constitution Day]

What is barely alluded to in this article is the fact that Vietnam, like so much of SE Asia, is awash with cheap dollars sourced via FDI. Our biggest export to Asia is inflation.

Heh.

Playing it straight, that's one way to (potentially) avoid the ol' "No Thanks" treatment from the mods.

[6SJ7]

Not sure if “ping” is the right choice of words on this thread.

Pong?

[DancesWithBolsheviks]

Those who went long on the Dong are taking it in the shorts.

[Clemenza]

The rather odd thinking on the part of the Vietnamese government is that devaluation, in the short term, will forestall a larger crisis once investors see that the Dong is overvalued considering the current interest rate. Meanwhile, the currency is expected to naturally appreciate in value relative to PPP as interest rates are gradually raised.

The Dong is not a freely floating currency, so the state has to take the steps to devalue or revalue. Nevertheless, the long term goal is to let interest rates go up gradually, which will have the effect of tempering inflation.

The Vietnamese government, in all their infinite wisdom, now have a currency that is overvalued, with concurrent inflation caused by a huge inflow of cheap dollars. If they were smart (which obviously, they are not), they would allow the Dong to float completely.

[massgopguy]

“I WAS IN A POOL!”

[Mr. Brightside]

For the record, I put HIGH value on my Dong.

[Dr. Bogus Pachysandra]

They need to pump it up! One of those jobs ya just have to do by hand! Take their losses like a man!

[Jersey Republican Biker Chick]

Where is Long Duck Dong and Long Dong Silver when you need them?

[Slings and Arrows]

I'm waiting to hear from the Moro Islamic Liberation Front.

[Grizzled Bear]

Sounds like the dongs in the crapper!

Only in San Francisco...

[DariusBane]

“If they were smart (which obviously, they are not), they would allow the Dong to float completely.”

I am obviously smarter than my wife thinks I am as I always allow my Dong to float completely. Thanks for the affirmation.

[DariusBane]

Yes,

You should NEVER throw good dongs after bad.

[Cpl. Dwayne Hicks]

"The Dong is not a freely floating... so the state has to take the steps... the long term goal is to... go up gradually..."

[NeoCaveman]

If they were smart (which obviously, they are not), they would allow the Dong to float completely.

You said it.

[BlueDragon]

"Okay, since when is a shrinking dong a good thing...economically or otherwise? "

If it doesn't shrink within four hours, contact your physician...