The consequences of the Anglo-saxon influence on the EU future

[DanS]

I was under the impression that DAVOUT was baiting his hook for other fish, but this is turning out to be a very entertaining conversation.

[Lawrence of Arabia]

If China does not invest through the capital account, then exchange rates fall, and the home country's exports become more competitive, again conferring a benefit.

unless there is a quasi -fixed echange rate regime, such as with china and the us.

[DAVOUT]

Originally posted by Adam Smith
The fact that China is investing in other assets negates points 2, 3, and 4 of your argument. Any time China invests through the capital account, the home country benefits through lower interest rates as described above. If China does not invest through the capital account, then exchange rates fall, and the home country's exports become more competitive, again conferring a benefit.

1. As I said, China is beginning to invest in other assets, so all my points have been and are still valid, and will remain valid a long time since the amount contemplated does not exceed 100 Billions $ and will not be allocated to $only.
2. A fall in the exchange rate will also result in an increase in the cost of imports that will offset partly or totally the benefit of more competitive exports.

[notyoueither]

Originally posted by Lawrence of Arabia

If China does not invest through the capital account, then exchange rates fall, and the home country's exports become more competitive, again conferring a benefit.

unless there is a quasi -fixed echange rate regime, such as with china and the us.

If they slow investment in America, and the Yankeebuck tanks, do you really think they'll continue to want to peg to the Yankeebuck?

What will they buy from anyone else, and how much would it cost?

[notyoueither]

Originally posted by DAVOUT


1. As I said, China is beginning to invest in other assets, so all my points have been and are still valid, and will remain valid a long time since the amount contemplated does not exceed 100 Billions $ and will not be allocated to $only.
2. A fall in the exchange rate will also result in an increase in the cost of imports that will offset partly or totally the benefit of more competitive exports.

Actually, it would be good for domestic production and job growth too.

The Mexicans would love it as well, as a lot of benefits would be seen there.

[Solly]

Originally posted by DanS
I was under the impression that DAVOUT was baiting his hook for other fish, but this is turning out to be a very entertaining conversation.

Yeah. He couldn't win a debate.