| Author | Message | ||
     Quantummorphed Comedian Username: Quantummorphed Post Number: 1669 Registered: 06-2008 Posted From: 24.14.147.0 Rating: |
If the true value of INR w.r.t USD is say 40. But India is forced to peg its currency at say 44. When an US employer buys a serviceable good at say 5$ and brings it to the state and sells it for 7$ (this is the key for all the econ crisis now. Assuming that the american consumer will always buy) and then use the 7$ to buy more of the good...driving further the cost the good to say 4$ and simultaneously drive the currency indicator further down to say 45... So for unit $ invested at the beginning of the cycle, previously, US bought more good/USD by driving the sell value of the goods...by forceably pegging those economies down.....coz if they dont do so....all their reserves...which were in USD will be terribly at FX risk!!!!!!!!!!!!!!!!!!!! This is how US cheated the world ever since the bretton woods happened. This is the second coming of the world financial order......I am so happy that US will get further and further marginalised...the dream of US empire will be shattered to ruins in the next 4-5 years..... | ||
| Jalsa Side Hero Username: Jalsa Post Number: 4858 Registered: 02-2008 Posted From: 69.115.29.189 Rating: N/A |
lol... cars --> japan, Germany Electronics --> again Japan, Korea Clothes --> made in....well, all over the world
What does the second sentence mean? I mean the right side of "or"? How is that related to productivity? | ||
| Quantummorphed Comedian Username: Quantummorphed Post Number: 1668 Registered: 06-2008 Posted From: 24.14.147.0 Rating: N/A |
Mark rosenberg's viewpoints....I tend to agree with him....This has for the last 2 decades been distorted out of shape by the crass american media... For decades together, US managed to muscle its way by arm twisting large economies to peg their currencies to a lower value w.r.t the dollar.With the down surge in the general acceptance as Dollar as a monetary benchmark, the same principle is coming back to hound this nation..... "I'm sure someone will pipe up to point out that US labor is more productive, so the difference is not so great. But much of what makes US labor seem so productive is our ability to buy high-value-added components from Asia at prices well below their true value, and use them to produce goods and services that can be sold at US prices. If all the components had to be made in the US, or the prices for imported components accurately reflected the value of the labor in them, US labor would not appear anywhere near so productive." |
