Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mishedlo who wrote (51951)	6/2/2006 1:39:44 PM
From: Incitatus	Read Replies (2) of 116555

Unfortunately at 18-1 or 20-1 wage differentials between the US and China/India the current account deficit can not be closed by currency changes unless one proposes that the US$ will fall 90%. The question then becomes "90% against what?" Is the RMB or YEN or anything else worth 90% more than the US$? If so why? Not to be petty... but if the USD falls 90% against X, X won't be worth "90% more than the US$." If it takes 10X to get 10USD and the dollar falls 90%, now it's 10X to get 1USD, so X is worth "ten times more than the US$." Or something like that. No?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next