Luke
11-04-2014, 11:13 PM
I think what happens in currency debasement is that countries that print lots of their currency will be less vigilant in their manufacturing endeavors because the lower currency gives them a free ride and allows them to slack off in their level of efficiency. So Japan in the last year debased its currency against the US by 50% yet exports are not increasing, though import prices are skyrocketing such as oil and natural gas because Japan shut down all its nuclear power plants. By Japan collapsing its currency that doesn't seem to help the main problem of debt/gdp of the government in excess of 250%. So what's the point of destroying your currency? Japan will learn this soon enough and soon enough the US Dollar will be on the slide down again.