On Nov 3, 2010, at 10:03 PM, Sandy Harris wrote:
> On Thu, Nov 4, 2010 at 7:36 AM, Shane Mage <shmage at pipeline.com>
> wrote:
>
>> Since the Chinese won't revalue, force them (and the Euros) by
>> devaluing the
>> dollar.
>
> China is not revaluing as fast as other nations might like, and it is
> still a tightly-controlled currency; they can stop revaluing whenever
> they like. However, it is flatly false to say "China won't revalue".
Depends what "revalue" and "devalue" mean. Most think of the words, and all write the words, as referring to an abrupt, significant, government-dictated change of exchange rate, not as a gradual, even if rapid, response to market conditions. Nobody called the fall of the euro last spring a "devaluation" nor its subsequent rise (both far exceeding the change over years of the yuan/dollar ratio) a "revaluation." Washington is calling for an enduring 10-20 percent change.
Shane Mage
"All things are an equal exchange for fire and fire for all things, as goods are for gold and gold for goods."
Herakleitos of Ephesos, fr, 90