economics

This means that China as an economic entity takes no loss on the dollars it had in its foreign currency reserves. It can buy and pay for just as much “stuff” after the revaluation as it could before the revaluation—and of course the real value of money is what you can buy with it. So the real value of the reserves hasn’t changed at all—just the

One of these powerful downmarket voids occurred in the steel industry, for example, when entrant companies employing disruptive minimill process technology entered through low-end beachheads; they have attacked relentlessly upmarket ever since.

Internet has destroyed many long-established business models – in advertising (Yellow Pages), media (newspapers), retailing (bookshops), and entertainment (music industry and video rental). Investors who underestimated the disruptive impact of new technology have lost money.35 The capital cycle also ceases to function properly when policymakers

Thanks to Europe’s monetary policies driven by the needs of Germany—a strong euro and low interest rates—the deficits showed up primarily in peripheral Europe. Before the creation of the euro, Italy, Spain, France, Greece, and Portugal had occasionally run fairly large trade deficits—in total they show up among the top ten deficit countries

This is certainly not to say that we were better off under the gold standard, but it does suggest that some of the automatic adjustment mechanisms under the gold standard were extremely useful and should somehow be replicated.

Notice yet again how similar this policy is to currency undervaluation or lagging wage growth in its impact on trade. Just as in the previous two cases, under conditions of financial repression there is effectively a hidden tax on households that serves to reduce disposable household income and, with it, household consumption.

Under the current global monetary system that came into effect in 1971, the dollar has had three major cycles of weakness and strength, and each one of these cycles of strength has caused a global short squeeze, leading to financial crises, and impeding growth until resolved. Nations that have the least foreign-exchange reserves and/or the most

Ideally parentage should be a privilege of health, not a by-product of sexual agitation.