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3 Comments
  1. Norbert Salamon says

    While it is true that China mighty loose some export opportunities if the $ devalues [due t dumping/non rolling over of US T’s] the saame devaluation would play havoc with the USA economy, for the USA would face higher prices for oil, numerouys natural resources [most of the alloying metals] and also rise in price of essential goods [such as clothing, electronics, etc].
    A the USA is barely limping along with $100 oil, a 10, 20 [or preferred 40% by some fools] devaluation wopuld put the price of oil over the point of economic collapse as happened with the $140+ barrel costs.

    Thje lessons of Canada, whiich faced strong pressure on debt, indicates that devaluation is not a panacea – for export might rise a bit, [helping the economy] but imports rise more,casing inflation, whic is a very negative effect for the 90% of the population depending on stagnant wage structure.

    1. Tim says

      Isn’t oil traded in US dollars though? Your comment would apply for all other countries, whose currency depreciates relative to the US dollar. In that case oil will become more expensive. But so long at the oil suppliers do not increase their prices, then a depreciation of the US dollars shouldn’t raise the price of oil for the Americans. 

  2. Norbert Salamon says

    While it is true that China mighty loose some export opportunities if the $ devalues [due t dumping/non rolling over of US T’s] the saame devaluation would play havoc with the USA economy, for the USA would face higher prices for oil, numerouys natural resources [most of the alloying metals] and also rise in price of essential goods [such as clothing, electronics, etc].
    A the USA is barely limping along with $100 oil, a 10, 20 [or preferred 40% by some fools] devaluation wopuld put the price of oil over the point of economic collapse as happened with the $140+ barrel costs.

    Thje lessons of Canada, whiich faced strong pressure on debt, indicates that devaluation is not a panacea – for export might rise a bit, [helping the economy] but imports rise more,casing inflation, whic is a very negative effect for the 90% of the population depending on stagnant wage structure.

    1. Tim says

      Isn’t oil traded in US dollars though? Your comment would apply for all other countries, whose currency depreciates relative to the US dollar. In that case oil will become more expensive. But so long at the oil suppliers do not increase their prices, then a depreciation of the US dollars shouldn’t raise the price of oil for the Americans. 

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