Comments on: Don’t worry about currency wars

By: fxtrader7

fxtrader7 — Mon, 28 Jan 2013 12:02:08 +0000

the ECB is more independent from politics than the Fed. In any case, Greenspan kept rates lower for longer partly because it help W. win reelection- he is a Rep after all.

By: breezinthru

breezinthru — Fri, 25 Jan 2013 10:43:12 +0000

It seems that the competitive benefit of having a devalued currency would, at some point, be limited by the increased cost of imported energy.

Even if the currencies of all major producer economies were in a race to the bottom, energy markets can and should respond instantly to changes in a currency’s value. From the standpoint of international competitiveness, the change in the cost of imported energy would be approximately equal as currencies devalue, but the ability of people and domestic businesses to increase their incomes is much less fluid and should result in a decrease in economic activity.

By: Jameson4Lunch

Jameson4Lunch — Thu, 24 Jan 2013 16:41:59 +0000

Some blame to Greenspan could definitely be given over the dotcom bubble, but the combination of investors not knowing how to price the new tech assets, as well as the government granting tax exemptions to these startups, greatly exasperated the situation.

By: Jameson4Lunch

Jameson4Lunch — Thu, 24 Jan 2013 16:27:47 +0000

The prime spark of the global economic crisis was the government incentive to lenders to lend to those who could not afford it, and subsidizing the housing market, creating a massive housing bubble. Very little had to do with being too laissez-faire, and everything to do with government meddling in the markets.

By: Wowpanna

Wowpanna — Thu, 24 Jan 2013 02:15:26 +0000

There are other currencies in the world, you know? Am sure even Germany is half thankful to the PIGS for taking Euro down but does not mean that is the path to be taken. Germany has responded very responsibly to the crisis by asking Greece, Spain to swallow a hard deal. They did not choose the easy (and way stupid) choice that US takes of printing more cash. All major currencies are happy to be weak one one way or the other. No country wants any sort of slowdown in growth let alone uptick in unemployment or loss of lifestyle(which was unaffordable to begin with!). There simply cannot be all the automation there is in the world, growth of productivity and still have all the billions around the world gainfully employed! Doing what? US has gotten obese enough(in every which way) consuming the world’s(ok, mainly China’s/Asia’s) produce(and not really paying for it). Who’s to take their place? This stupidity of humongous production for the sake of growth and shoving it all somebody’s guts must stop. It is unhealthy for all involved. The alternative you will find is that everybody around the world accept a more sober lifestyle of less wants(and hopefully that little of something locally produced – reason why i hope transport should really become way too expensive to shuttle goods around the world.)