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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.98+1.3%Nov 28 4:00 PM EST

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To: carranza2 who wrote (21065)8/12/2007 4:18:49 AM
From: TobagoJack  Read Replies (1) of 218085
 
<<The Chinese would thus lose US markets and at the same time give a nice boost to American exports to the rest of the world>>

China ex-factory price is 1.00, USA retail price is 5.00, and so (i) adding 27.5% duty to the 1.00 will do nothing to decrease China export, (ii) dropping USD to RMB by 100% will do nothing to decrease China export.

Importer margin are being hurt by the current round of devaluation, not the originating factories, for the most part.

Whether dropping USD against RMB will increase USA export or not is less important, because USA cannot boost its economy by export - mathematically very difficult.

As to brands, they are increasingly for sale, just ask Ford.

The nuclear option is just code words for the empire wishing to commit hari kari, sooner, by asking to make all items more expensive for its effectively insolvent consumers.
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