[BenKenobi]

Heh, deflationistas have known this for awhile now.

Interesting how he argues against a common currency and for a common currency all at the same problem. Greece’s problem is that they no longer have a Drachma and are roped to the Germans through the Euro. If they had their own currency then they would be far better off and could let it sink.

As for the Yuan peg, all pegs cost money. The ‘self-fixing’ mechnanism is market inefficiency associated with the Peg. China’s burning money to keep their peg up.

[dixjea]

I wish I understood all this better.

[Mind-numbed Robot]

Greece’s problem is that they no longer have a Drachma and are roped to the Germans through the Euro. If they had their own currency then they would be far better off and could let it sink.

Thanks for the explanation. I have wondered how the small nation of Greece could be bringing the whole world down.

[bruinbirdman]

"As for the Yuan peg, all pegs cost money."

Then there is of course all governments spending borrowed money rather than taxed revenue.

Then there is vast production overcapacity.

yitbos