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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (122092)	12/27/2003 12:34:04 PM
From: GST	Read Replies (1) \| Respond to of 281500

<Sure.. We've seen institutional protectionism in Japan through the Zaibatsus and discriminatory distribution networks, and we've other government use currency devaluation to make their products even more attractive in foreign markets. And IMO, that's why the USD is in decline as of late.. Bush has decided to wage his own form of currency devaluation to fight the cheap labor and institutionalized protectionism found in other countries.> Currency exchange rates are determined by markets and only in a small way are influenced by government intervention. The markets have run out of room to finance the ballooning US current account deficit and the US federal budget deficit -- that is why the dollar is going down. The dollar is the world's primary reserve currency. Mismanagement of the US economy threatens the entire world -- part of the price of "globalization" with one country doing its best to dominate the global system. The US economy and currency are unsinkable -- just like the Titanic.