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To: RussianConservative
If ruble devaluation is good for Russia, then just get on with it, print a billion times as many rubles as their are now, and make their value go to zero. It'll be great, your currency will be wallpaper and real capital will fly out of the country in huge hunks, and you can call that an "export surplus", while nominal wages will go to the moon, and you can call that "growth".

Japan actually made things. They didn't get an inflationary brainstorm that they could instead live off of the proceeds of counterfeiting until their bubble in the late 1980s. Their economy has not grown since. Inflation and devaluation accomplish nothing, except to protect the connected, allow them to loot others, and avoid the efficiency and discipline of actually investing capital only in worthwhile ways.

16 posted on 04/22/2003 12:33:26 AM PDT by JasonC
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To: JasonC
First, you mistake the devaluation of a currency on the market with mass printing, which causes hyper inflation. If anything Russia's inflation has been going down steadily. It was hyperinflationary when the ruble was 5 to a dollar. And for your information, Russia does make things, a lot of them.

I don't understand why you are so negative. Its not your currency. Is it just out of spite? You can say what you want, but almost 4 years of only positive results and sustained growth rates makes the case. The US dollar, by the way, is being steadily devalued. The EU is now worth more then the dollar, by almost 10%.

17 posted on 04/22/2003 6:30:17 AM PDT by RussianConservative
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