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CalEden
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Mr. Alan you are spot on. And thats my vote!
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Thai Girls : Meet Sexy Thai Girls
Posted on: 6:54 pm on Jan. 14, 2004
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Mr Alan
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In a recession, the cure for a budget deficit is not more taxes (which merely stunts economic growth). The cure is to stimulate the money supply and spur the economy. Tax revenue is a function of personal income and corporate profits. As these increase during the recovery, the deficit will take care of itself (as John Kennedy discovered in the 1960's when he cut taxes).
The US dollar has been artificially inflated by foreign governments who undervalue their own currency. This was done to increase jobs and exports in their own countries. The fact that the US no longer is willing to subsidize this strategy does not indicate a fundamental weakness in the US economy, nor does it mean that disaster for the US is on the horizon. As the dollar weakens, US products become cheaper overseas and US exports and jobs will increase.
The only expensive foreign goods that Americans really need are Japanese cars, and most of them are now made in North America (except the luxury models). Virtually all apparel comes from Asia, but clothing is so cheap now that an increase will not cause much ripple in the US. With regard to foreign investment in the US (including the financial markets), the US stock market has risen dramatically in the last year, even while the dollar has declined. There is more than enough liquidity within the US to keep the markets strong.
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Bangkok Women : Meet Sensual Bangkok Women
Posted on: 7:54 pm on Jan. 14, 2004
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eyeswideopen
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Mr Alan
How exactly is it done that a country undervalues their own currency? Are there any side effects that perhaps make this a dangerous gambit?
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Thai Girls : Meet Sexy Thai Girls
Posted on: 8:00 pm on Jan. 14, 2004
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Mr Alan
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There are different ways countries undervalue their own currency. For a country like China they simply set the exchange rate by government decree instead of letting it float on exchange markets. The Chinese government has sufficient powers to deal with those who violate the law.
For countries like Japan, the government intervenes in the foreign exchange markets by selling their own currency and buy dollars (or US investments). The law of supply and demand increases the dollar and lowers their own currency. In some cases they borrow (essentially print) money to do this.
As to the pitfalls of this strategy, that is a complex question. It makes foreign products more expensive, so their citizens pay more for goods and lowers their standard of living, but tends to increase employment. It also reduces the amount of money they can invest in their own country. But it does encourage development of industry within their own country and increases exports and employment. Most politicians prefer full employment (for obvious reasons), and in some countries it is a cultural issue to make sure that there is full employment.
Japan is the perfect example of this. Their economy has stagnated for more than a decade, their citizens have a lower standard of living than Americans (most Japanese products cost more in Japan than in the US), but they have huge exports and full employment.
It is sometimes hard to say which is better at any given moment, but the US economy and standard of living has done better than Japan in the long term (especially the last 15 years). Right now, with unemployment high in the US, the dollar needs to be devalued, or more accurately it needs to be valued more realistically without artificial manipulation.
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Bangkok Girls : Meet Sexy Bangkok Girls
Posted on: 8:46 pm on Jan. 14, 2004
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Ballsburstin
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Mr Alan,
Japan is a good example of what you speak. On a sad note, as the Japanese economy has stagnated for the last decade (despite very low incountry interest rates), the younger generation there has become disillusioned and the suicide rate has climbed. The U.S. does not want to emulate what the Japanese banking system has done. The Chinese are not yet ready to unpeg the Yuan from the Dollar, but when that happens, there will be a strong ripple throughout Asia and the U.S.
-alls
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Thai Women : Meet Matured Thai Women
Posted on: 8:55 pm on Jan. 14, 2004
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fastmover
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If China de-pegs, they must be cautious re: Hong Kong which is not strong enough to also free float. PRC considers H.K. the showcase of its one China policy. If it fails in H.K. there is no chance for T*iwan.
China will only revalue against the peg 5 to 10%. China only takes baby steps in currency matters, not giant leaps of faith. And needs major stability for the bank IPOs this year.
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Bangkok Women : Meet Beautiful Thai Girls
Posted on: 9:11 pm on Jan. 14, 2004
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al hambra
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ewo,
You said "kleptocracy", hahaha.
I like that. Your own coinage?
I never heard before.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 9:15 pm on Jan. 14, 2004
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eyeswideopen
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AH
No I heard it somewhere else, forget where
Hey Mr Alan, can I get the cereal box your reading all that stuff off of?
Since when is -
"borrow (essentially print) money"
- borrowing money the same as printing it?
I was going to get all eddycational on you but figured, nah -
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Thai Girls : Meet Active Thai Girls
Posted on: 10:16 pm on Jan. 14, 2004
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Mr Alan
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Some countries just print more money. Most countries are more "respectable" and print government bonds and sell them.
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Thai Women : Meet Matured Thai Women
Posted on: 10:22 pm on Jan. 14, 2004
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dirty guru
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The australian ecomony is booming with US speculaters returning as their buck faulters, back down under. to highlight the greenbacks sorry decline at sept 11th 2001 we were about half the us dollar worth......... and even a year later not much better (one wonders if the exercise worked that day) but being the US all ecomonies wonder.. Now the australain dollar is 77 cents rising almost daily, and thailand a better prospect.. (american express?) sure just make that aussie dollars thanks!
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 10:26 pm on Jan. 14, 2004
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