Agreed, but aren't exports the best way to get out of any financial situation? It wasn't FDR's ridiculous government spending that got the US out of the depression, it was becoming manufacturer to the world just prior to WWII.
The Yuan doesn't just "match the dollar", it's pegged to the dollar. I haven't seen it move at all. The Japanese Yen got down to 88 Yen/US$, though it has weakened slightly to around 91 this morning.
I don't see any reason why the Chinese would want to change their policy at the moment. A weak Yuan is good for them. Japan has got to be in a world of pain between the strong Yen and the weak US market.
A weak dollar is ALL of their problems...
Not quite all, but close enough. A strong local currency versus a weak US dollar makes it more expensive to export to the US. It also makes imports from the US cheaper, except that we really don't make anything any more except war toys.
Either the banking system implodes or generational debt last 40 years or more at this rate of electronic debt creation.
Yes the banks are hording to cover bad bets lurking in the background but there is not enough funds on god’s green earth to cover what is/will-be due. Traditionally, stock markets are safe havens as large companies will recover first with any economic recovery anywhere in the world while trying to keep up with falling currency values.
Deflation being checked by inflation. If the Federal Reserve wasn’t sending money to all corners of the globe then deflation wins and destroys the current banking system. Interest rates are only artificially being kept low to keep the interest payments on the debt manageable.
The US dollar is based on confidence if that is lost then inflation/deflation won’t matter....Zimbabwe here we come.