Currents of Currency Message Board

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Strategies & Market Trends : Currents of Currency

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From: Ahda	4/6/2018 2:14:02 PM
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Tariffs Unfortunately humans have emotions that can interfere with numeric logic. Country x and country Y whose currency and wage rate differ are trying to level things off so country Y puts a tariff on bulls and county x puts a tariff on cows. We all also know there is going to be a surplus in cows and bulls as tariffs will reduce sales in both nations and we could briefly have a fire sale in the nation these products originate from. What these nations have done is create a great deal of b chit as they promote protectionism. Along comes super smart a wee tiny country very close to the border of X. They say to bull country that if you send the bulls to us we can deliver them to X without the additional cost of tariff as there is no tariff placed on us. Good news this guy the middle man is going to make money while the two others quibble about how to create equal when there is no equal only equal opportunity.

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