Posted by: Anonymous Coward
on March 12, 2004 10:09 PM
*If* the premise that China and/or India will allow their currencies to free float against the dollar was valid, then your logic would stand.
The problem is that after the collapse of the South Asian countries a few years ago, other countries are wary of allowing the US to export inflation by the means of devaluing the dollar. At this time, it's China which is exporting deflation to the rest of the world, buy force fitting the yuan 8:1 to the dollar.
In India, if in fact the rupee starts to rise against the dollar, most probably you'll see their central bank buying up dollars like crazy. They can always print more rupees, just as the US currently is surviving by printing up dollars.
The results of such a "print-war" are likely to be ugly; with the US much more dependent on cheap imports, guess who will suffer in the long run?
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Re:How to bring offshored jobs back to the US?
Posted by: Anonymous Coward on March 12, 2004 10:09 PMwill allow their currencies to free float
against the dollar was valid, then your
logic would stand.
The problem is that after the collapse of the
South Asian countries a few years ago, other
countries are wary of allowing the US to
export inflation by the means of devaluing the
dollar. At this time, it's China which is
exporting deflation to the rest of the world,
buy force fitting the yuan 8:1 to the dollar.
In India, if in fact the rupee starts to rise
against the dollar, most probably you'll see
their central bank buying up dollars like
crazy. They can always print more rupees,
just as the US currently is surviving by
printing up dollars.
The results of such a "print-war" are likely
to be ugly; with the US much more dependent
on cheap imports, guess who will suffer in
the long run?
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