Quote:
Originally posted by Sidd Finch
I don't know what China's going to do. But if currency suppression leads to cheaper prices for Chinese goods, it also leads to (prohibitively) higher prices for US exports to China.
The trade-off may be okay in your view. But it ain't "free trade." Is it?
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What's teh mechanism to supress currency price? Selling a bunch of their currency, and printing more to fill its place? All that gets is rampant inflation, which has internal effects as well. Generally, it's pretty tough to affect currency prices other than by moral suasion, unless you have a really massive bankroll. Whatever you do ultimately reverses pretty quickly.
Why are we worried about exports to China? If they don't want to buy our stuff, so be it (of course they steal it through IP, but that's a different issue). Plenty of other countries want to buy our stuff, and that's fine.
