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SkyChief
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Boosting Trade By Devaluation
Feb 7th, 2019 at 11:37am
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Sounds plausible, right?

Impose some tariffs to weaken the Dollar, and exports rise - investors get dividends -  trade imbalance is marginally corrected  - everybody happy. 

That's what Trump thinks anyways.   Sadly, it doesn't really work like that.    Cry

Forbes contributor John Tamny explains why tariffs are a Tax on consumers:

https://www.forbes.com/sites/johntamny/2018/01/28/last-week-donald-trump-raised-...
  
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The Opposition
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Re: Boosting Trade By Devaluation
Reply #1 - Feb 7th, 2019 at 10:33pm
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I understand, first and foremost, that tariffs are aggression.

But honestly, just on personal preference, tax me until I have to sell my kidneys if it means more jobs.
  

This moral relativism of yours is exactly what lets government take this freedom, then that freedom, until we have lost them all.
-SnarkySack
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BobK71
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Re: Boosting Trade By Devaluation
Reply #2 - Feb 8th, 2019 at 9:22am
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Competitive devaluation is a well-known tactic to boost one country's own economy at the expense of others.  The global elites try to avoid it by consensus.

When things get really bad, say in the 1930s and, to some extent, just after 2008, this consensus breaks down, and it's bad news for the globalists.  (And when it's bad news for them, it's usually even worse news for everyone else -- which is how the world system works.  Benefits go mostly to the elites, and pain goes mostly to the public.)
  
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BobK71
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Re: Boosting Trade By Devaluation
Reply #3 - Feb 8th, 2019 at 11:34am
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SkyChief wrote on Feb 7th, 2019 at 11:37am:
Impose some tariffs to weaken the Dollar...


I think the article says the admin wants to impose tariffs, and also weaken the dollar, separately.

I guess it's conceivable that tariffs will indirectly weaken the dollar, but I've not been able to visualize it.
  
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SkyChief
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Re: Boosting Trade By Devaluation
Reply #4 - Feb 8th, 2019 at 11:55am
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BobK71 wrote on Feb 8th, 2019 at 11:34am:
I think the article says the admin wants to impose tariffs, and also weaken the dollar, separately.


I stand corrected.   Smiley
  
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Jeff
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Re: Boosting Trade By Devaluation
Reply #5 - Feb 8th, 2019 at 3:56pm
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BobK71 wrote on Feb 8th, 2019 at 9:22am:
Competitive devaluation is a well-known tactic to boost one country's own economy at the expense of others.  The global elites try to avoid it by consensus.

When things get really bad, say in the 1930s and, to some extent, just after 2008, this consensus breaks down, and it's bad news for the globalists.  (And when it's bad news for them, it's usually even worse news for everyone else -- which is how the world system works.  Benefits go mostly to the elites, and pain goes mostly to the public.)
That will happen in the same general form anytime you let any one person or small group of people plan economies.

Planned economies don't work, and can't work because they oppose and invert everything that is offered by economic liberty and they do it while pretending that their plan will produce a really great economy. It won't. It can't because no group of planners can know enough or even make good use of what meager things they can learn, to be able to decide macroeconomic questions. Macroeconomic questions can only be answered by people trading freely in a free economy.

This has been well known for a long time. "Progressives" tried to bury the knowledge because they liked Lord Keynes theory a lot. They could see Keynes theories could bring them power and wealth. They could become the ruling class of industrial America and pose as do-gooders while screwing things up Royally.
  

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BobK71
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Re: Boosting Trade By Devaluation
Reply #6 - Feb 10th, 2019 at 12:49pm
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Jeff wrote on Feb 8th, 2019 at 3:56pm:
That will happen in the same general form anytime you let any one person or small group of people plan economies.

Planned economies don't work, and can't work because they oppose and invert everything that is offered by economic liberty and they do it while pretending that their plan will produce a really great economy. It won't. It can't because no group of planners can know enough or even make good use of what meager things they can learn, to be able to decide macroeconomic questions. Macroeconomic questions can only be answered by people trading freely in a free economy.

This has been well known for a long time. "Progressives" tried to bury the knowledge because they liked Lord Keynes theory a lot. They could see Keynes theories could bring them power and wealth. They could become the ruling class of industrial America and pose as do-gooders while screwing things up Royally.


Agreed, and there are two ways to get rid of this system by awareness.  One route is to analyze and argue economics like Hayek and von Mises (Austrian economics.)  Another route is to say, economics is too complex, we don't know and we don't want to know.  We just want to take power away from the elites because we know it corrupts.

Both routes seem legitimate to me.
  
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Jeff
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Re: Boosting Trade By Devaluation
Reply #7 - Feb 10th, 2019 at 2:47pm
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BobK71 wrote on Feb 10th, 2019 at 12:49pm:
Agreed, and there are two ways to get rid of this system by awareness.  One route is to analyze and argue economics like Hayek and von Mises (Austrian economics.)  Another route is to say, economics is too complex, we don't know and we don't want to know.  We just want to take power away from the elites because we know it corrupts.

Both routes seem legitimate to me.
Yes, I agree, let's do both.
  

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