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Why America is going to win the global currency battle

Discussion in 'BBS Hangout: Debate & Discussion' started by Ubiquitin, Oct 13, 2010.

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  1. YallMean

    YallMean Member

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    I just read the entire article. The thesis is US has the upper hand in currency war b/c it can print dollars to no limit and other countries will face the inflation pressure of capital inflow resulted from US monetary policy, such as printing more dollars, but the outcome of this will not be good for the rest of the world as identified in your quotes. So the article really takes subtle jab at US inevitable anti-deflation monetary policy. I am sure this is not your point.
     
    #21 YallMean, Oct 13, 2010
  2. Ubiquitin

    Ubiquitin Member
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    That is exactly the point. The only nation (United States) that would win in a currency war would be the nation trying to avoid it. Export oriented developing economies need the United States (and the Euro Zone) to buy their goods, but their economic policies have led to chronic current account deficit in the United States which is politically unacceptable.

    The reason the US is trying to avoid the currency war is so global trade does not completely unravel. The US would win in the sense its economy would survive, but the world would lose.

    Therefore, nations need to let their currencies float or the United States will sterilize all of their efforts by turning on the currency printing press.
     
    #22 Ubiquitin, Oct 13, 2010
  3. YallMean

    YallMean Member

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    So you are suggesting the article is telling the rest of world to comply with US b/c of its mighty power of dollars? That's not the same article I read. I says nothing about US "trying to avoid the currency war". It's actually quite the opposite. the FT editor argues that US is willing to do whatever it takes to reinflate regardless of the impact to the rest of the world, and he thinks that's bad.
    Now, not saying what you said is necessary wrong, but that's simply not the point of the article.
     
    #23 YallMean, Oct 13, 2010
  4. meh

    meh Member

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    So you're saying that US has the hammer because it can screw over the rest of the world more than itself. And when the rest of the world suffers more, decide to iso the US for the rest of eternity for being such a douchebag, we emerge as the victor?
     
    #24 meh, Oct 13, 2010
  5. Ubiquitin

    Ubiquitin Member
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    Crudely, yes. While most of the world relies on the US because of its economy and military dominance, they could have allowed the US treasuries go unsold.
     
    #25 Ubiquitin, Oct 13, 2010
  6. RocketForever

    RocketForever Member

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    Are you guys trying to argue who would win that imaginary 'currency war' based on your own speculation and interpretation of the article..while at the same time everyone of you also agrees that this same 'currency war' is not going to happen? You guys are really cute. It's time for your afternoon nap btw.
     
    #26 RocketForever, Oct 13, 2010
    Last edited: Oct 13, 2010
  7. YallMean

    YallMean Member

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    No. That's not the argument.
     
    #27 YallMean, Oct 13, 2010
  8. Cohete Rojo

    Cohete Rojo Member

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    http://www.marketwatch.com/story/middle-east-internet-interruption-looks-fishy

    George W. Bush strikes again!
     
    #28 Cohete Rojo, Oct 14, 2010
  9. deepblue

    deepblue Member

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    The printing press is already on, its been on for a while now.
     
    #29 deepblue, Oct 14, 2010
  10. RocketForever

    RocketForever Member

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    So do you mean you and the other guy (Azadre?) are arguing with each other about two different arguments?
     
    #30 RocketForever, Oct 14, 2010
  11. YallMean

    YallMean Member

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    No.
    The debate is whether the currency war and US victory is inevitable. Azdre says the article implies such still can be avoided if the rest of the world cooperate with the US together. Looks to me the article makes the point that such result is inevitable and the rest of the world will not come together to cooperate with the US on the issue.
    You probably should have read the article first before attempting to be cute yourself. :cool:
     
    #31 YallMean, Oct 14, 2010
  12. SamFisher

    SamFisher Member

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    It appears to be making no difference.

    We're going to have to get one...that goes up to 11.
     
    #32 SamFisher, Oct 14, 2010
  13. MadMax

    MadMax Member

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    You must report this post before reporting any others or something.
     
    #33 MadMax, Oct 14, 2010
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