@athousandyoungsaid Trump blamed China for currency manipulation when the value of the yuan went down. Why would he think China would do that? What benefit would China see if their money was weak?
It may be tied somehow, to loans we owe to china and china getting more dollars this way. not sure.
I can give you the answer. It's because if the yuan is weak, Chinese goods will be inexpensive for foreign customers. This provides a strong economic incentive for Chinese manufacturers to ramp up production (and for foreigners to stop manufacturing) because they have the whole world as a market. This makes it hard for Trump to increase manufacturing jobs in the USA which is something he wants to do.
It's more complex than you think. A weak currency is not necessarily a bad thing. Gold is economically nearly worthless and basing economic policy based on how much gold you can buy is an idea Adam Smith helped make obsolete centuries ago.
The mercantilist nations believed that the more gold and silver they acquired, the more wealth they possessed. Smith believed that this economic policy was foolish and actually limited the potential for "real wealth," which he defined as "the annual produce of the land and labor of the society."
@athousandyoungsaid And you guys want one person to own everything.
I see what you are saying, but you are also saying that you want Everyone to own everything, you, know.....Marxism. Who yall going to replace Tim Cook at Apple with? Will Warren Buffet be forced to work in a factory assembly line? Bezos in jail. Why cant yall leave people the hell alone? A nosy lot.
@averagejoe1said Well, I guess subliminally I want to be clear that economic muscle is GOOD, mainly to beat my competitors, as Trump tries to do to China every day. YOU seem imply that it is not good. I am one step away from saying that old movie line, greed is good. the moderators might kick me off!!!!!!!!!!! Y'all don't ever forget that successful businessmen/women create jobs. Don't you want that loser son out of your basement?
@earl-of-trumpssaid Ok, so you want a weaker currency that buys less gold?
Fine, Kev.
As a citizen of a country that generally imports more goods than it exports I would probably favour a strong currency but if I was a president who promised to bring manufacturing jobs home I would favour a weak currency.
Some people are clearly under the impression that the terms ‘currency’ and ‘economy’ are interchangeable.
Personally I prefer Ruby’s and Sapphires.
Trump Has $1 Billion in Debt
21 Oct '20 00:14
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