Thursday, December 8, 2016

We can have balanced trade and continued de industrialization and wage rate stag

  • Often we fail to note very distinct forex rate ” moments ”
    The rate that produces “some how measured ”
    purchasing power parity
    The moment that balances funds flows
    And the moment that balances trade
    Each distinct moment deserves scrutiny
    China is still far from a forex that reflects
     any measure of purchasing power parity
    Job class Americans are correct to call for rectification of forex rates
  • Posted by Pane
    Without stipulating the assumed changes in others

    That's obvious enough eh ? 
    Fiscal deficits if increased above recent expectations
    will impact forex rates kicking off bang on changes nearly everywhere
    But what is the assumed response of monetary and credit policy ?
    Nothing ..for example..after the Trump shock
    Precluded a higher fiscal deficit here in the states
    Combined with a more fully off setting
    Fed / Treasury set of actions in forex markets
    Yes we need far more fiscal thrust AND a lower imperial Dollar
    We can have both !
    If not
    Refute the conjecture