Here is what my understanding is at the moment: a strong dollar means cheap imports and expensive exports. Right at the start that seems to hurt manufacturing while keeping the consumerism illusion alive longer. I suspect like the iceberg most of the action/effects are below the surface.
I seem to recall in the late 80s or early 90s Mexico devaluing their peso which I recall was to inflate/liquidate their debt. How exactly does that work?
Didn't China devalue their currency at the end of last year and if they did does that help prop up the dollar? China was a net seller of US debt last year; wouldn't this help them sell their US securities while weakening our manufacturing base?
I mentioned counter intuitive earlier and it seems that winning (or losing) a currency war means different things from strength than from weakness. If we are in a currency war with China what are some options we don't have that China does assuming an underlying structural weakness in our central Banking system?
What I hope to accomplish is a road map from point A (the start) to point B (present) and to point C, Ca, Cb,etc., (future) with mile markers and landmarks. Hopefully this information can help us/me negotiate a treacherous stretch coming up likely lasting for several years.
Can someone explain currency wars
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