halik
Lifer
- Oct 10, 2000
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If China keeps devaluing their currency and then switches to a gold standard (they've been hoarding for some time), what kind of effects might that have on the world economy?
They already are devaluing to stimulate their exports (and internal manufacturing) due to their range peg to the dollar. Being a manufacturing juggernaut, and therefore can provide for their own internal needs, creating a gold backed currency would immediately place them as the worlds most powerful economy overnight. Right?
Or am I mistaken? Is this not a possibility?
Absolutely retarded. They clearly prefer having control over the float of yuan and be able to depreciate it as needed.
Gold backed currency is extra asinine in this situation, given that their gdp grows about 3-4x faster than worlds gold supply. Total ron paul loonie nonsense.
And for the record, backing your currency with gold has never made *any* economy more powerful. Look at monetary system of any of the G20.
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