It’s all  “blue smoke and mirrors”  so that Finance can live….and dominate another day. That is the complete look at it all.

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Old Wood:  If all currencies in the world are devaluing relative to the dollar, why are we not seeing corresponding reductions in prices of their imports.

Me:  Because the theory that the economy is in general equilibrium is false. It’s actually in a continual and radical state of cost inflation by cost accounting convention that all costs must go into price because as flows the system always creates more costs than it can possibly create in individual incomes. In a technologically advanced economy you have to create the conditions for the market to clear. Demon est Deus inversus.

General equilibrium theory is actually the self interested pawn of Finance and the tenaciously held delusive belief of libertarian and conservative economists and their pundits. Liberal economists of course don’t have any more of a clue about what the actual problem is either. Both sides of the aisle are unconsciously making either a war or a reactively vulgar socialism…inevitable.

Please try to look at the actual data in the cost accounting statistics of any and all enterprises and keep an open mind.

Old Wood:  But their whole excuse for devaluation is for price competitiveness, to stimulate their exports.

Me:  Exports are only one aspect of the overall system. If the entirety of the system from extraction of resources on through to retail sale is cost inflationary….cost inflation wins.

Crysangle:  What is actually happening though is that all the slack (deflationary , either due to productivity increases or market saturation) is being hijacked into government spending and financial resolution . They are simply taking the deflationary cut , and printing it in the name of 2% , and then spending it according to own agendas .

Me:  Government has its contribution to the problem. I’ve never denied that, but the deeper problem is the cost inflationary nature of the system itself. Government may add money, but the thing that is overlooked by most theorists is government injects money BACK INTO the system thus it does not and cannot remedy the problematic nature of the system ITSELF. The ONLY way the system can be balanced is for a supplemental income to go around/go directly to….the individual FIRST…and then into the system. Otherwise the cost inflationary nature of the system is re-initiated.  350 years ago when Say was around and technology was crude, mostly individual effort and not as expensive, the economy was fairly close to being in equilibrium. But that was 350 years ago for Chis sake! Theorists need to look at actualities unflinchingly and in an unbiased way.