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

  Upshot
  Job class Americans are correct to call for rectification of forex rates
• Posted by PaneDecember 6, 2016 at 10:39 am
  
   we ought not focus on consequences of a change in one flow
  Without stipulating the assumed changes in others

  
  

  That's obvious enough eh ? 

  Example

  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