| SamuelRSmith said: Erm... it's not $700, it's 68,000 Yen. Currency conversion is useless because if the US Gov't printed a load of notes tomorrow, without any changes in the demand for the dollar, then the dollar would decrease rapidly and the PS3 would get a price hike! No, it wouldn't. It would still be 68,000 Yen. Or, what if, for whatever reason, the demand for the dollar went through the roof, and thus it became worth a whole lot more. The 160gb PS3 with FFVII could drop to $100. OMG, Japan gets things so cheap! No, it would still be 68,000 Yen. |
Did you fail first grade economics?
This is a serious question, did you?
If US did somehow print enough money to offset the value of the dollar in half, meaning instead of an exchange rate of 100 yen to equal a dollar, it's now 50 yen, that means it's worth 1400$ US. However if the dollar was offset, everything in the economy changes, from minimum wage(would nearly double) as well as cost for anything would double. That is how the economy works. Things tend to stay the same price. Also goes to supply and demand, but conversion stays the same. On the other hand, if the dollar was now 200 yen for 1 dollar, now it would be worth 350$, but it's the same cost. If something happened that bad, minimum wage, would be halfed, and also so would goods and services.(If minimum wage wasn't halfed, then stuff would get more expensive, then less expensive).
This anaolgy saying it's worth 700$ is not only right, but accurate. No amount of spin can make it wrong.
