Ben Franklin
March 4th 2007, 08:44 AM
Does anybody here know about this...? :huh:
http://www.atimes.com/atimes/Japan/IC03Dh01.html
US exchange-rate warfare
Unable to break down intractable Japanese protectionism, the US resorted to exchange-rate warfare and succeeded in defeating the Japanese threat. Now the same exchange-rate war is being launched against China.
China has been on a high-growth path over the past two decades, albeit from a dismally low base, while Japan fell into protracted economic stagnation off a high plateau as a result of the United States strong-arming the Plaza Accord in 1985 to force a sudden, sharp rise in the exchange value of the freely convertible yen. The currency eventually stabilized, but only after rising more than 51% against the US dollar, forcing the Japanese economy on a downward path for more than two decades. The yen rose from 360 to the dollar in 1971 to top out at less than 80 in April 1995.
The Japanese economy has yet to recover fully from the meltdown of its financial sector brought on by financial globalization through US dollar hegemony, even though it remains an unmatched industrial competitor. The dark experience of Japan and to a lesser degree South Korea leaves China justifiably apprehensive about making its own currency fully convertible with floating rates and opening its financial markets.
http://www.atimes.com/atimes/Japan/IC03Dh01.html
US exchange-rate warfare
Unable to break down intractable Japanese protectionism, the US resorted to exchange-rate warfare and succeeded in defeating the Japanese threat. Now the same exchange-rate war is being launched against China.
China has been on a high-growth path over the past two decades, albeit from a dismally low base, while Japan fell into protracted economic stagnation off a high plateau as a result of the United States strong-arming the Plaza Accord in 1985 to force a sudden, sharp rise in the exchange value of the freely convertible yen. The currency eventually stabilized, but only after rising more than 51% against the US dollar, forcing the Japanese economy on a downward path for more than two decades. The yen rose from 360 to the dollar in 1971 to top out at less than 80 in April 1995.
The Japanese economy has yet to recover fully from the meltdown of its financial sector brought on by financial globalization through US dollar hegemony, even though it remains an unmatched industrial competitor. The dark experience of Japan and to a lesser degree South Korea leaves China justifiably apprehensive about making its own currency fully convertible with floating rates and opening its financial markets.