Whom exactly was it, that first convincingly pronounced the US$ to be overvalued and in need of devaluation? How will the rest of us know when the correct valuation has been attained? How do we know that the US$ isn't already undervalued, for that matter.
Percy
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How exactly would it get worse? US food prices generally don't rise
as much as others because we are a food exporting country and food
prices are priced in US dollars. I am not really that concerned with
rising Euro vacation prices. So do you mean Chinese imports will get
more expensive? Yes, I guess so.
On the second point: you talk as if there is some natural, objective valuation for a currency. There isn't. It is all relative and qualitative and rather manipulated. I don't generally think the US dollar value should decline that much, or that rapidly. My main point is that all they hype and fear of its decline is a political talking point to get at the true target: to cut state spending in key areas such as social programs, education, public welfare etc. (ie: neoliberalism). The whole idea that we are in a global competition with everyone else which requires us to maintain a solid (neoliberal) fiscal house, has been the basis of neoliberal shifts in spending for 30+ years. Manipulating the currency and creating political hype about inflation and devaluation is just one more means to further the neoliberal project.
Brad