Jay,
You really should have added a little dressing to this part... Maybe as such ?
... If the US wanted to devalue its currency, it can easily do so. Should the other nations not agree, they can in turn announce intents to competitively devalue, and the market will do their bidding as well. As you say, after much volatility, we then get back to the original starting point and start yet again. The problems comes when the politicians of each country, including the US, start to back up their words with action, namely a looser monetary policy, coupled with a still less disciplined fiscal policy, and to deliberately poison the money. In such event, all currencies aiming to be devalued will be devalued, but not so much against each other, <font color=RED>but against monetary gold and against certain finite resources (oil, forests, mines, number of hours available in the labor pool) </font>
I think you are causing a commotion :o) I may need to buy more <font color=wheat>wheat</font> now before it gets out of hand. We may be in a <font color=wheat>wheat</font> bubble ;o)
regards
Kastel |
