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http://krugman.blogs.nytimes.com/2012/05/22/lets-all-devalue-against-each-other/Reply
the pk smoking gun
its buried in sarcasm but
here is pk saying
well short term forex deval
isn't able to push a fast recovery
"...the answer is devaluation of the euro as a whole.
Um, against whom?"
" while I and others have been pushing for years for an end to Chinese currency manipulation, China is at this point (a) not looking very strong itself (b) just not that big in the world economy — not yet."
major walk back that
and his straw man argument
is the euro against NA dollars and japan's yen
he
misses the rest of the EU ie britain sweden poland hungary etc
and the oil states and the slavic belt and ....
"More generally, Europe as a whole, like America, remains a relatively closed economy. Its salvation must be mainly internal."
an amazing statement really
as if america as he calls it isn't open enough to be effected by imperial dollar policy
"Now, if devaluation is a code word to mean raising the inflation target, fine."
no devaluation is a code word for crush cross currency trade arbitrage profiteering
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Saturday, May 26, 2012
more masonizing
but
1) the relative national growth rate method of trade balance control is prefered by corporations
2 ) its prefered by corporations
because it preserves arbitrage gains
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that in no way counters facts
indeed the hegemony of this strategy produces these numbers
if forex has a role its secondary its targeted and its most often about pumping and dumping selected emerging national currency zones
ie enhancing dynamic corporate arbitrage games
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conttradictions among the corporations here ?
certainly
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consequences over the time horizon:
balancing trade
without the use of forex policy
can over a few cycles fantasically undermine
a nation's industrial wage class
(see rust bowl)
in particular like a silent heart attack
this undermining can proceed
even with little or no trade deficits
at least for a certain period
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btw
the present btwo track global speedway
with a yellow flag north and green flag south
is a perfect example of corporate prefered rebalancing of trade
without attacking the fundemental forex tilts
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there you have it
everything explained
and no one acting irrationally ..once you know who calls the shots