ManusJustus on 15 September 2010
| Kynes said: ManusJustus, the problem with your reasoning is that it's not a linear relation between currency value and economic situation. There are ways to modify artificially the exchange ratio, as the Chinese government does to reduce the Yuan's value. |
Which is what the Japanese are doing now, obvioulsy, but before the government didn't intervene and their currency value increased. I like that Japan is going to buy American dollars to make their currency worth less, but you still argue that America is doing better than Japan.
The Chinese government intervenes with currency all the time to drive exports, unlike countries like America and Japan who let the market value their currency and only intervene in tough times.
