Showing posts with label imports. Show all posts
Showing posts with label imports. Show all posts

Thursday, June 30, 2016

Imports Collapse At East Coast Ports

Imports are collapsing--just another side of an "improving economy".  Sarcasm intended.

http://www.zerohedge.com/news/2016-06-29/imports-collapse-east-coast-ports

Monday, June 3, 2013

Japan’s Easy Money Tsunami

This explains why currency wars may be temporarily stimulative to export economies, but also why they always end in tears.

http://mises.org/daily/6445/Japans-Easy-Money-Tsunami

Friday, October 16, 2009

Russia and China joining the anti-dollar party

It's not just rumor and rhetoric anymore:

http://en.rian.ru/russia/20091014/156468599.html

It's a resonating chorus of allies, enemies, and trading partners. In fact, foreign governments hate a weak dollar for several reasons:

1) USDollar weakness makes exports to the US more expensive, dampening their export-driven economies
2) it reduces the value of their reserves, which comprise of dollar-denominated assets like US Treasuries

Ultimately, dollar weakness should be stimulative domestically for these countries, as imports are cheaper, but it reduces the competitiveness of their exports. And since their economies depend more on exports and less consumerism, the weakness of the dollar threatens their attempts to stimulate their own economies.

The deal-breaker is the fact that the US Treasuries in their reserve accounts decline in value, and these IOU's are promises of repayment from a bankrupt borrower--the US government.

Thursday, May 21, 2009

USDollar debasement


Me thinks printing more dollars debases the dollar, which makes US exporters more competitive against foreign competitors. The other side of the coin is that imported goods are more expensive for US consumers. Welcome to Zimbabwe (okay, I exaggerate--I hope).