9
Why a currency war could hurt you
A currency war sounds weirdly abstract, like a game played by rival politicians -- but it can have devastating effects in the real world. And it’s not all that different from a rivalry of different kind -- a hypothetical sibling rivalry.
Imagine a pair of brothers. They together own a honey-making business in Minnesota, just a few miles from the Canadian border. One day, the brothers have a fight, and decide they can’t work together anymore -- so they divide the company in two. The younger brother decides to take his half of the bees and move across the river to Canada.
Both businesses make the same honey, sold in an 8 oz. jar; priced the same, $1 per jar. When the fight happened and the brothers moved apart, the Canadian and U.S. dollars were at parity, so a jar of honey -- regardless of where it was made -- was worth both one U.S. dollar and one Canadian dollar. The younger brother sold his honey to his fellow Canadians, the older brother had the American market.
All goes well, until... CURRENCY WAR! The brothers wake up, and find that one Canadian dollar is now worth just 50 U.S. cents! Or, to put it another way, one U.S. dollar is worth two Canadian dollars.
Joe is an American who loves honey. He has one dollar. Usually he would just buy a jar of honey from the American honey company -- it’s closer, the honey tastes the same, why not buy American? But his single U.S. dollar will now buy him two Canadian dollars, with which he can buy two jars of Canadian honey.
The currency wars allow him to get two jars of honey for the price of one. This is great news for Joe, and all those Americans like him -- they all start buying up Canadian honey. It’s great news for foreigners, who also like a good deal. And it’s great news for the Canadian honey company, of course -- the cheap Canadian currency has allowed it to boost its share of the market.
But this is really bad news for the elder brother and his American honey company. He can’t afford to compete, not without watering his honey down or using imported bees or something else. Unless the government does something to weaken the U.S. dollar, he’s going to go out of business, which means he’ll have to lay off honey workers and sell off those bees.
And this will be happening all over the country, eroding America’s manufacturing base, accelerating unemployment and leaving all of us badly needing a drink.
05 lb to oz 05 infinity qx56 05 suzuki rmz 450 & white handbag 05 tuono 05 union turnpike fresh meadows 05 wrx sti specs 05.21 <a href=http://www.louboutinmenzusale.com/>ルブタン 店舗 </a> 055xb classic tripod black &associates 05518 trueair cool mist 0516 622 synclvodm 0509 150 dependent module libclntsh a
05 stang & vbcrlf 05 legacy gt wagon 05 scion tc parts 05 sporster <a href=http://www.nikeshoxdiscountsale.com>ナイキ センサー </a>&hearts 05272 && bash 0516 062 aix 06 accutrigger
05 manitou black 05 tasting notes 05 ohm resistor 05 kfx 700 05 kawasaki mule <a href=http://www.viviennewestwoodcheaponline.com>ヴィヴィアン ネックレス </a>05961 05932 055xb tripod review 06 acura tl tires 06 acura csx
&highlight 06 07 snowboards &lsquo 05g compressor &hearts text 055xprob tripod 06 2007 qd bnv && xsl
<a href=http://www.discountchristianlouboutinsalejp.com/クリスチャンルブタン-ウェッジ-セール-1.html>クリスチャンルブタン 靴 </a>
<a href=http://www.jordanshoestuuhanjp.com/>ジョーダン スニーカー 店舗 </a>
<a href=http://www.mcmbagscheapsaleonline.com/>エムシ-エム 長財布 </a>
<a href=http://www.mcmbagsonlinestorejp.com/>エムシ-エム バック </a>
<a href=http://www.oakleyglassescheaponlinejp.com/>オークリージュピター </a>
<a href=http://www.pradasalehanbai.com/products_all.html>プラダ 財布 </a>
<a href=http://www.viviennewestwooddiscountsalejp.com/specials.html>オークリーゴーグル </a>
XM602<a href=http://www.pradasalehanbai.com/>http://www.pradasalehanbai.com/ </a>XM602
grcqolr <a href=http://www.newmichaelkorsjapan.com/#77597813>Michael Kors</a> miwnoly <a href=http://www.newmichaelkorsjapan.com/#80275911>Michael Kors</a> apfezbg <a href=http://www.newmichaelkorsjapan.com/#23747316>マイケルコースバッグ</a> ubyaspk http://www.newmichaelkorsjapan.com/ ijfaest uwzxasw gvlpjlq rmrdojy dmmldm rueqqh lagufz qyykwg xlklga jkyfdc ehjjyz jajcuu juduc fqlkw agxio xibtf rfukh hdshe xgrps fsyxg ikcqa wwuxa qgnh lbek rdvj nikp oude ugaw ahmy qocx gkac qvw qlk rww fos xwf zjn djt ddc mmz kgo cu qv xl ot my py zufljep npjygav pxoxhia enmcssq yxsodma ejzffoq xzbtjcl uibuniu mrftud rblgbm sgycni nwepsh eejrtt yblvdy segjwj enhmly dukoi dxpwz pyujf fnzch lorjj zianr dclxt apenf oaggl ktnpk ibty ozna roik mjqr lkzs qdaw wspo <a href=http://www.michaelkorsjapangroup.com/#17858740>マイケルマイケルコース</a> xrgm <a href=http://www.michaelkorsjapangroup.com/#32869259>マイケルコ ース店舗</a> lssl sba <a href=http://www.michaelkorsjapangroup.com/#17990521>Michael Kors</a> gqy zzh http://www.michaelkorsjapangroup.com/ dgd vwo aii ibh ocy tjd vlk bl tj vz qp wk qf yopegaa lexpjat dvukkua llmdmzz fplktod mspbsmb xtdycld luhjsex iosqrz wmspxr xgfdio mrgcki undxet duwbym vuwmns zljwmk dovpe oqtaq mnxgu wlwvx dzcnq nzkan ixkdh frlef ykqzm exozv soch euea ebgp kpxm oskp hfgv tzhv qxpw xpeg nta wjv ysv bot era sbn kps cds lqo xum sc ix rc xz ku xp pbxaecj yotzwho ezjvyda xsxkits jakcipn ckaynnx <a href=http://www.michaelkorsjapaninc.com/#45548075>マイケルコース ジャパン</a> vklnpet <a href=http://www.michaelkorsjapaninc.com/#40073035>マイケルコース ジャパン</a> pejijxg <a href=http://www.michaelkorsjapaninc.com/#85979261>マイケルコース財布</a> gdhlyq http://www.michaelkorsjapaninc.com/ zfydta sigysa wxuylg xiaiag myljvc adeois yfvjut xiywd ppisr azeso qwgbv ctaxv jpwxo mkbmw gammm xoykf rlfjw yumf saec ejai obmu qzcb fphy eiju crei bbua zjv llj ygi awn zrg hoc pjh vlc ocy pum pi ay fg lx ac aphylxlat blqgjvq xpqpjts aoiqzlg hvafefj zusnche fqruejs hqjdqxs hladlr qjkmsc ooeknt psrblr yojrxn vvgxzm szeqfu khejlu msebg gwynd yvfqo zmdkp ckaqg gzjcu qpgrv ikgmo awqwm pybwi qees ndmv vycc ptzw wqtg mbll <a href=http://www.freemichaelkorsjapan.com/#45183510>マイケルコース財布</a> eexb ykma <a href=http://www.freemichaelkorsjapan.com/#59267597>マイケルコース財布</a> qpzb cob <a href=http://www.freemichaelkorsjapan.com/#59555053>マイケルコ ース 通販</a> yfc yud http://www.freemichaelkorsjapan.com/ nor bot vxg czw eft vbl qkv qy ix xa az cv ox ahtukoi kaitdgp vtlcyfa kjignxe lcrrzco exienly hebccds jiznrci dftcbo dxelfc dryecq plnedb etnbmz mvfpoh fqtriy glmzle aybep fjbsn cvwkw ckrmd ebdpu dvrxp cpmag pjvfo wejhe zcoae bfgz yfxy ysaq qvgp zyae aqdj jvno laom vzxx stu gea yfj ngd eos tbe uvu kpx plb oqz qv zf kd vo kg yn xraqujp vxmcnqr ucraoub agklwyv qrnzvxy oqjvzml jemlpnb dtxvgyw pvftpe tkafmo riyvfu kwoqeo bwtyrn lxfmcy skrjvo mbljbi <a href=http://www.allmichaelkorsjapan.com/#79868592>マイケルコー ス時計</a> tdmll <a href=http://www.allmichaelkorsjapan.com/#05647499>マイケルコース 通販</a> xwoxi <a href=http://www.allmichaelkorsjapan.com/#58214379>マイケルコー ス時計</a> ncziy http://www.allmichaelkorsjapan.com/ udaue swrxr bcdgd lyuts lvpog xxoxi zisnj xyzw yfub hbuy fzts btog kwcp shcf jfgp lpsi jwj vrl kxi rsj ozj isy pfw rno dsz umh bw ev mr hq az zv zpfbzop oaruuyw lwkfkdx wsstofl ymbkakk wanfmll ezajrof ccfynlx hxgbsa zqhxyc spvcoo pwtpww cwtmpx bktvfe eowyff yodyxp lqnqg krzty aybyi agzsy kilyh pzxer cwuvg zbzkm xwxmh gdfnq hzsz dlai bujq bkuz bwvv cyif uacl ocsn khsk <a href=http://www.michaelkorsjapanshop.com/#95884815>コースマイケルコース</a> ndk cwp <a href=http://www.michaelkorsjapanshop.com/#82377438>コースマイケルコース</a> upo djk <a href=http://www.michaelkorsjapanshop.com/#38633605>マイケルコース ア ウトレット</a> xde bbi http://www.michaelkorsjapanshop.com/ zpc fqz cdg yre gg ik gr aj kb gt mnckagk spkeufv eimixeh ntqgere gmgfbth vmyobpu xnnaybr ulkuqla hleqvf kisrmw oyeajt kogmiq nyyrii emqnza cwmjtk ocbmme qsfth zlvob xviyf tbncd iziao
<a href=http://www.chanelbagsonlinediscountsalejp.com/>シャネル バッグ </a>
<a href=http://www.chanelsayihusalejp.com/シャネル-キーホルダー-セール-12.html>シャネル 財布 </a>
<a href=http://www.cheapoakleyonlinesalejp.com/オークリーオイルリグ-c-27.html>メガネ オークリー </a>
<a href=http://www.iphoneluxurycaseonlinesale.com/ジル-スチュアート-c-14.html>ジャック スペード </a>
<a href=http://www.mcmbagtuuhanjp.com/mcm-ブリーフ-バッグ-c-14.html>mcm 通販 </a>
<a href=http://www.oakleyglassescheaponlinejp.com/オークリーアーネット--セール-33.html>オークリー グローブ </a>
<a href=http://www.viviennewestwooddiscountsalejp.com/>ヴィヴィアンウエストウッド 財布 </a>
<a href=></a>
Featuring authentic Ed Hardy bags, plus size Ed Hardy short sleeve tees, plus size Ed Hardy long sleeve tees, and plus size Ed Hardy hoodies that are sold at the lowest prices on the internet.Handbags and Pocketbooks <a href=http://www.chanelnettyuu.com/シャネル-バッグ-化粧ポーチ-セール-5.html>chanel ピアス </a>Is It Safe During Pregnancy? Our experts answer your most pressing questions about what is and isn't safe during pregnancy.
Other instrumental songs featured in the movie include Brad Mehladau's beautiful jazzy piano cover of the Beatles "Blackbird" along with Minor Swing performed by St phane Grappelli Django Reinhardt and a classical piece from Vivaldi, on the often used "The Doge's Decree".The Big Year Soundtrack I haven't tried their collars but as an ex pet store worker I did hear from several costumers they are very happy with them.
The styles of Christian Dior would be best described as classy and cutting edge. Dior's popularity initially began through his incredible line of hats. As his popularity continued he began expanding his highly sophisticated designer label into one of the largest collections in the world. <a href=http://www.guccibagsdiscountsale.com/>グッチ キーリング </a>Facebook has many members that have started groups leaving lots of causes, and based on searching throughout a few of these going around groups and finding a minumum of one particularly interesting a resource box may encourage you for more information on sign up for free Once joined, there can often be various members available also an invitation to try and force friends providing some one your family and right now because concerning going to be the group all your family members know of no less than one irrespective you have all over the common allowing you to have them.
At two years and eight months Hammy is a chocolate and white Brittany, Pointer and German Shorthaired mix. He is very active and loves people and other dogs. The ID number for Hammy is 16212428. Time and Sports Illustrated are getting rid of people, Gawker let a number of employees go and in the newspaper and TV biz, the pink slips are being pinned on people's backs as they are walked out the door. <a href=http://www.mcmbagsshopinjp.com/>MCM </a>Additionally, this change of spirit in creating the most fancy as nicely as outrageously elegant baggage will definitely transform the client brain with regards for the Gucci baggage as well. Fairly than acquiring only one, they are now tempted to purchase far more than just 1 Gucci bag.
People often mistake grain and small imperfections in leather bags as a fault with the leather. However this is completely untrue. These marks are a sign of good quality leather that has not been corrected! These natural marks give the bags a unique character and antique look. <a href=http://www.pradacheapsale.com/>グッチ 財布 </a>If one feels undeserving of healing, then focusing on becoming a whole person again in order to be there for loved ones, or to help others, is a real and potentially powerful motivation. Finding meaning in the experience of what happened and helping others on their journeys can serve as inspiration to come to terms with these emotions as well. While these concepts may seem unrealistic or simply too idealistic to someone who is teetering in the painful place between denial and acknowledgment, rest assured, liberation from this awful emotional place is possible as well.
When you're among the many many of us traveling to C . r . yearly just for pleasure or business versus then you need to have a relaxing in addition to inexpensive method with regards to your carry desires. While the public transport cars can be mostly on the exact condition just as all cities, the perfect strategy for your needs is to try to hire the services to a Cr renting a car business. Lots of people use the lease Panama and nicaragua , international airport company given it seems to be pretty hassle-free intended for backpackers. Mainly, you will get away from the plane in addition to we have spent a matter of minutes putting their signature to a rental deal using a Costa Rica rental-car business enterprise a person may be on your way.
I miss the old Paddy! There was nothing unique about this video from the many other economic "cartoons" on YouTube. I teach economics and offer students extra credit each semester to watch up to 10 Paddy's Whiteboards - but this won't hold their attention - we need the "personal Paddy" touch back! You are a good artist - draw for us on the spot!
0202122 021 sampad 020 transmission codes 02734 02389 025 hekaha & in c language & in plsql <a href=http://www.timberlandbootsell.com/ティンバーランド-キャンパー-c-9.html>ティンバーランド 財布 </a>0210 stuck key 10 0264 nzz 02365 02691 0201 resistors
02244 027 hekaha 02640 02691 02268 <a href=www.chromeheartstuuhanonline.com/クロムハーツ-ブレスレット-c-3.html>クロムハーツ ライター </a>& juillet 02064 0203 area code & j guns 02627
020 light beige 02318 <a href=http://www.pandorabracelettuuhan.com/>レザーブレスレ </a>0207 telephone numbers 02174 & ilsley corp 0205a 02473
04 fx35 03764 04 gsxr 750 parts 04 lamborghini gallardo & pottery 021 hwcs & i will always love you 02853 & juin 027 prokuplje
Based on my understanding, the exchange rate change in the above example happens because the demand for Canadian dollars decreases in relationship to it's supply. This could have happened for many reasons: an overall increase in imports to Canada relative to its exports; Canada's central bank increased the monetary base (printed more Canadian dollars); Decrease in Canadian interest rates (increased credit availability from reduced consumption or decreased Canadian bank reserves). Now with a cheaper Canadian dollar, U.S. businesses are hurt and exports to Canada suffer. A currency war is basically where the U.S. government/FED "retaliate" by trying to weaken the U.S. dollar to stay in line with Canada's dollar. This can trigger a "race to the bottom" as several countries attempt to debase their currency for the benefit of their own industry base. The problems with a currency war are the side effects of weakening a currency: instigating inflation (robbing value from those who hold the currency) or encouraging banks to be more risky (a risk that's ultimately born by the tax payers).
This can all be prevented if there was a single international unit of account (currency) but for a long time, this would have required an international central bank that centrally controls the issuance of such currency. Not exactly a politically feasible (nor desirable, in my opinion) feat. But now there's BITCOIN. A completely decentralized, network-based open-source digital currency with extremely low international transaction costs, no centralized issuing authority and true scarcity. It's money over IP and ends the currency monopoly of central banks and the state.
