The Economist: Let the Dollar Fall

[Giancarlo]

Originally posted by Tingkai

Which is still much higher than the Euros.

China has a birth rate of 16 per 1,000;
Spain has a measly 9/1,000

Besides, with Chinese immigrants you'll get lots of hard-working entrepreneurs.

Considering our death rate is lower than our birthrate, and the Chinese have a higher death rate, that is not a problem.

You got issues.

[Tingkai]

Originally posted by Giancarlo


Considering our death rate is lower than our birthrate, and the Chinese have a higher death rate, that is not a problem.

You got issues.

Forget about population growth. We're talking about which guys have it and obviously Spanish men are lacking in that department.

[Tingkai]

Originally posted by Kidicious


No, importing goods costs jobs, as well as dollars. That's my comment.

Yes, if you import goods you have to pay for them so in that sense imports cost dollars. And if Chinese company can sell a widget for US$1 while an American company sells it for US$10 then the American company will close and jobs will be lost.

But there is more to the story then that.

The widget buyer now saves $9 by buying the Chinese widget. The buyer could decide to spend the money on consumption, for example a meal at a restaurant. That creates new jobs.

Or the buyer invests the savings. Again that creates new jobs.

Also, the American widget maker, knowing that it can't make competitively priced widgets, might start producing high-tech gadgets that China cannot produce. In this case, no jobs are lost, more or less.

The simple fact is that cheap Chinese imports greatly benefit the American economy.

[Tingkai]

Re: Re: Re: The Economist: Let the Dollar Fall

Originally posted by Kidicious
The deficit could be much larger and the Fed could raise interest rates and cause the dollar to strengthen. .

While that is theoretically possible in the short run, in the long run, higher interest rates and a large government deficit leads to a lower dollar.

Higher interest rates:
- increase the cost of borrowing money to finance the deficit, thereby increasing the deficit which further weakens the dollar.
- slows down the economy, leading to loss jobs, small profits, and lower tax revenues, all of which increases the government debt. Again, this puts downward pressure on the dollar.

The slowing economy also puts downward pressure on the dollar as does the uncertainty created by the larger deficits.

[Tingkai]

Originally posted by Kidicious
If the dollar is being devalued, and the remnimbi is pegged to it then the remnimbi is being devalued also.

Relative to other currencies, yes. This is why the Bushies reckless spending has greatly benefited China and made it economically stronger.

However, the point to remember is that the cause of this effect is the Bush administration's fiscal policies, not China's sales of RMB for the greenback.

[Ben Kenobi]

Japon is now offering 5000 dollars cut off of net taxable
income for each child in a family and it than woman have 5 babies she doesnot have to work she can stay home than raise then while her hushand have to pay no income tax at all for 10 or 15 years I believe. This show the Jap Government is worry about their decline pop.

That's not bad. Something for other countries to consider with abysmal birthrates. Like Canada.

[Giancarlo]

Originally posted by Tingkai



Forget about population growth. We're talking about which guys have it and obviously Spanish men are lacking in that department.

Spanish guys are hotties... I think they would be more active than americans and canadians. It is obvious they are not lacking that department. I just wish more of them were at least bi.

[Lawrence of Arabia]

thats a good point there Tinkgai. Never thought of it that way.

[Ben Kenobi]

they would be more active than americans and canadians.

Naah. Canadians up North have nothing else to do in the winter.

[Giancarlo]

Originally posted by Ben Kenobi


Naah. Canadians up North have nothing else to do in the winter.

Oh please. Asher is an example why I would never date a Canadian.

[Nubclear]

Canada
America
Fez
Giancarlo

One could easily pronounce it "Gee anne car low", which sounds nasty.

[Giancarlo]

Shut up, tass.

[Ben Kenobi]

Asher is an example why I would never date a Canadian

Asher is representative of Canadians?

[CharlesBHoff]

Originally posted by Ben Kenobi


That's not bad. Something for other countries to consider with abysmal birthrates. Like Canada.

It isnot working yet. The Jap culture treat the woman worst than the Islamist culture does. Than son wife is the slave of his mother, the wife has no life apart from fer hushand and family. There are Japnese woman in their late 30 and early 40's who donot want childern or be marry, if marry they either have thenself serlize or have aroblation.

[Nubclear]

Originally posted by Giancarlo
Shut up, tass.

OK, Fez.