Curiosity Over Pride (FYI: To comment, send an e-mail to

Tuesday, February 9, 2010

This is starting to get fun to watch...

I used to think watching sports was the great American pastime. How silly I was, this is way way better.

It appears that the Greeks may be about to breach the Citadel wall. While that may be a rather unfortunate setback for flipper, at least we all know Greeks are a lot of fun! ;-)


Thai said...


Dink said...

"Is China manipulating its exchange rate?"

Okay,curiosity over pride, why would it want its currency to be undervalued? Such complexity .... report back on what you find down in those rabbit holes that I'm too afraid to jump in ;)

And whats the deal with Luxemborg (re the wiki chart)? They blow away Iceland and Iceland is totally hosed (note the erudite economic terms).

Debra said...

Link n°2, comment... "My God, Thai, what are you trying to do to me at 8:30 in the morning before my brain is functioning ?" Fortunately I quickly put it back into the little box it came from before too much harm was done...
This post looks... all Greek to me.
You know how much I hate all those lists and other combination of NUMBERS in the current international Greek, that are way over my head.
But I do know this...
Just what, pray tell, is the Franco-German alliance, the very core of the European Union, going to bail Greece out WITH ?
Will it be done by juggling numbers on a page ?
Yesterday word came out that Germany was going to have to reevaluate social aid packages for an increase.
It was the only ALMOST stable, and solvable government in the Euro system.
Currency speculation is destructive. It is counterproductive.
This is my opinion. There MAY be healthy economies in the Euro system, but I don't see them...

Thai said...

China produces good cheaply and sells them in the US and Europe for a profit. In effect China earns a lot of "hard currencies" (US dollars- hah!!) from its export sector.

This money comes home to China where they can do one of two things with it: spend it at home or spend it abroad. In truth they do a bit of both as they both invest in their own country and consume more goods and they loan it to Americans/Europeans who want to borrow the money for their own purposes (say supporting big government Keynesian spending).

Remember how I love to point out that we can be our own worst enemies? I think you will see that the Chinese are shooting themselves in the foot as they rob their own Peter to pay their own Paul.

Remember, if your currency is undervalued, then your exports are cheaper in another country. So the export sector of China is politically powerful since they make a lot of money and hence have asked for additional help from the government to be even more successful. They get this help by asking their own government to devalue or manipulate their own currency.

Chinese exports get cheaper. But remember the conservation of energy. The can only do this by spending money somewhere else in the system so in effect other Chinese taxpayers are subsidizing some of these cheap Chinese products.

"Yes", Americans and Europeans factory workers are loosing jobs as American companies cannot compete with cheap Chinese exports. But at the same time, American consumers are being subsidized by Chinese taxpayers.

Some people win, some people loose but from a long term perspective, I think the Chinese are actually doing us a favor. In the long run Americans could not compete for these jobs and now they are letting us lose them in a subsidized manner.

China is accumulating a very large liability that will one day come home to roost- god help them when it does.

The Most Fabulous Objects In The World

  • Hitchhiker's Guide To The Universe trilogy
  • Lord of the Rings trilogy
  • Flight of the Conchords
  • Time Bandits