So, what changed? If a basic part of the strategy was to keep an overvalued dollar, then why did the strategy change or become unviable over the last ten years?
When the economy is no longer strong but you keep your currency overvalued bad things happen eventually.
The strategy probably "became unviable" (read: the US economy got gutted) due to financialisation and deindustrialisation (as discussed elsewhere on this thread). It probably ceased to be viable by the time of the dot-com crash, and has the dollar has been kept on life support for 8 years, and is now dying. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
...and taking sterling with it, looks like.
it's hard to imagine how we'd weather all this yurp if we still all had separate currencies, it's going to be bad enough anyway, but if the lira were still having to try and stand in this hurricane....shudder
it's really making me appreciate the wisdom of having consolidated currencies, how long before the uk gets the memo?
if this keeps up, the people will be begging for a referendum to say 'yes' to, so they can get back on the bus, no matter what poison the Daily euro-hate Mail peddles. ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
