Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Well, if you don't have much trade I suppose that might be the case. But I do think you might have noticed something about the price of food, gasoline, and so on. Furthermore, profits denominated in hard currency do not matter to corporations, as their owners usually have costs in the same currency as the corporation sells in. Further, furthermore, corporations are the main winners in devaluations as they can mark prices up for domestic consumers to compensate for imported goods, while become more competitive in the export markets. Indeed, boosting corporate profits is the main idea behind devaluations.

Now, I could talk about the corrosive effects of serial devaluations in the long run (reduced competitive pressure etc), but I won't as those thing clearly are not relevant in the current situation. or rather, worrying about them right now would be like worrying about a blocked up toilet when the house is on fire.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Mon Feb 20th, 2012 at 01:59:49 PM EST
[ Parent ]

Others have rated this comment as follows:


Top Diaries

Occasional Series