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Devaluation?

Should western economies devalue their currencies to correct the balance of trade imbalances?This will make Chinese goods more expensive and existing debt more expensive to service.Also,western goods become less expensive in Asia Pacific countries.

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It must be nice

on your planet, but I don't intend to visit.

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Flash!

George Attazder wrote:

on your planet, but I don't intend to visit.

 

What planet is this?  Perhaps Flash has been and can give us a review/tour?

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Isn't this what Germany ahs

Isn't this what Germany has effectively done by tying themselves into the euro. the reason it works for them is they have no debt.

UK/USA would be stuffed.

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We have already devalued

Sterling has lost about 20% since the crisis started.

Besides, every country is trying to devalue (even the Swiss) and clearly not everyone can. Paradoxically, as the Euro lurches from crisis to crisis and Bernanke prints even more dollars, Sterling (along with gold) may be seen as a 'strong' currency... 

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China Rules OK

As the Chinese probably have taken over the contract for printing all our money in any case we'd better be careful. If they stop making our shirts and shorts we'll have nothing to wear, if they stop building all our T.V's we'll have nothing to watch. What do we then need money for! Problem solved!

 

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