A race to the bottom?
U.S. gets rebuffed at divided summit
The G-20 is fighting over who can devalue their currency; the timing of the meeting is awkward for the U.S. because the Fed just pumped an extra $600 billion into the U.S. economy.
China, Germany and other countries were ticked because that essentially devalues the dollar and puts other countries' currencies at a disadvantage in global trade.
Oh, and wasn't it just last month that the U.S. was spitting at China for doing roughly the exact same thing? Namely, artificially stifling inflation to keep exports flowing.
Refresher: A lower-value currency means other countries can import cheaper goods. What's to prevent a race to the bottom? Something to look into...
The G-20 is fighting over who can devalue their currency; the timing of the meeting is awkward for the U.S. because the Fed just pumped an extra $600 billion into the U.S. economy.
China, Germany and other countries were ticked because that essentially devalues the dollar and puts other countries' currencies at a disadvantage in global trade.
Oh, and wasn't it just last month that the U.S. was spitting at China for doing roughly the exact same thing? Namely, artificially stifling inflation to keep exports flowing.
Refresher: A lower-value currency means other countries can import cheaper goods. What's to prevent a race to the bottom? Something to look into...
Labels: dollar, globalization
posted by deadeye at 9:03 PM
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