Currency Wars Essays

Submitted By kfu120
Words: 902
Pages: 4
Open Document
Thesis: One of the biggest problems in global recovery is that nations are purposefully devaluing their currency and in the long run this is hurting economic growth and stability.

Introduction: Aristotle once said “it is more difficult to organize a peace than to win a war; but the fruits of victory will be lost if the peace is not organized.” Now, we’ve all heard of the classical wars, but have you ever thought of a war where blood may not be shed? After extensive research from current articles and attentiveness to recent debates from the elections I wish to inform you about the currency wars. As a voter it is up to you to be educated on various political topics to know what candidates stand for. One of the biggest problems in global recovery is that nations are purposefully devaluing their currency and in the long run this is hurting economic growth and stability. First I will discuss who is greatly involved within this war. Then, address a solution that will be beneficial to all parties. (AA)

Body

Transition: Let’s first start with the current problem within this war.

I. In order to understand this issue there are two main terms that you need to know according to Laurence Knight a Business reporter from BBC News in a 2010 article.
A. There are two types of countries in the world “deficit” countries and “surplus” countries.
1. Deficit countries are countries that need to borrow money from other countries and import more than they export.
2. Surplus countries are countries that lend out money to countries to help finance their exports, while exporting more than importing.
3. From this graph you can clearly see the gross domestic product of deficit and surplus countries China and Japan have large GDP and they are able to lend money while the US and UK are in debt and have a significantly lowered GDP. [Show graph of GDP downloaded from http://www.bbc.co.uk/news/business] (St)
B. Ever since the financial crisis and global recession, the United States wants to export more in order to help its economy grow and get out of debt.
1. Again, Knight states “The United States says it wants to export more, to help its economy recover but surplus countries don’t want to lose their competitive edge.” (Et)
C. At the same time when the United States is trying to get out of debt, countries are trying to manipulate their currency.
1. Despite international pressure to increase the value of the yuan, China’s monetary system, they will only appreciate a little.
a. “China has let the yuan appreciate against the US dollar by 6.6% in the past two years and is not likely to rise for the next two years,” according to Brian Wingfield of Forbes.com in 2007. (St)
b. Lee Brodie a producer of Fast Money on CNBC in 2010 states that “China has argued time and again that moving too quickly with currency reforms could devastate its export-driven economy.” (Ex)

Transition: Now that you know a little about the problems within the Currency war, I will explain some solutions.

II. First of all, the United States should try and become more sufficient and not rely so much on imports.
A. Think about the last time you used a product or bought something. Did you notice a “Made in China” sticker? Think about that pencil, backpack, anything; it is all made in China. [Show multiple photos downloaded from Google of everyday items]
1. If you could choose between two products, which would you buy knowing
Show More

Related Documents: Currency Wars Essays

Case Study On Dollar Aids World Economy In Currency War

by rizheny@sfu.ca only. Redistribution only allowed with firm license. Call +12126179030 for info. Economics BRIEF NEWS, ANALYSIS AND COMMENTARY MOST READ ON BLOOMBERG Draghi Buying Spree Seen Starting Modestly Dollar Aids World Economy in Currency War DATA REPORTS (NEW YORK TIME) TIME EVENT SURVEY ACTUAL PRIOR 7:00 RU Gold, Forex Reserve — — 458.3B 7:30 US Challenger Job Cuts YoY — — -20.70% 7:30 US RBC Consumer Outlook — — 52.4 0.05% — 0.05% 7:45 EC ECB Main…

Words 5802 - Pages 24

James Rickards

weave a fascinating story of currency being used as a pseudo weapon since the last century. In the modern era, currency is being manipulated to wage a war against competing countries on the economic front. This economic warfare is the subject of this book. Rickards, initially talks about being involved in a war-game exercise near Washington D.C., where the weapons used were all financial like currencies, stocks, gold etc. Then, the Author explains how the currency wars start from a domestic economy…

Words 751 - Pages 4

How Did Money Affect Colonial America

The lack of money supply was the main issue, which soon led to bartering. Bartering was an exchange of goods without using currency. Unique food, such as fish and tobacco, were not available everywhere. This is due to the fact that certain areas did not have the necessities specific animals and food required in order to grow and flourish. On that note, unique food held more…

Words 1140 - Pages 5

Economics: Central Bank and Global Currency Debate Essay

answer considering the events of the past week is the 1970s. There are plenty of echoes in the world today of the currency instability, rising inflation, rising unemployment and political uncertainty that marked that troubled decade. Over the weekend, finance ministers and central-bank governors from the Group of 20 industrialized nations tried to play down fears of new currency wars that have been spooking markets since last month's election of a new Japanese government. The Bank of England recently…

Words 1070 - Pages 5

The First Paper Money In The United States

which would later form the United States. 1775 Continental Currency American colonists issued paper currency for the Continental Congress to finance the Revolutionary War. The notes were backed by the "anticipation" of tax revenues. Without solid backing and easily counterfeited, the notes quickly became devalued, giving rise to the phrase "not worth a Continental." 1781 Nation's First Bank Also to support the Revolutionary War, the continental Congress chartered the Bank of North America…

Words 683 - Pages 3

Cold Reality In Financial Collapse Scenarios For Planning Alternative Investments

decade. Currencies collapse. Wars destroy a whole generation of potential contribution. As an aside, the idea that wars produce economic activity is a convenient delusion. This delusion is akin to saying that if we all smash our cars up, and buy new ones, then our economy will improve. Certainly for the auto makers. That same money could have been spent a million different ways to improve our lives but is now going to a small cadre, while impoverishing the majority. That is what war does – only…

Words 796 - Pages 4

How Did The Articles Of Confederation Change The Constitution

The Articles of Confederation was the United State's’ first constitution. There was not many praiseworthy aspects of this constitution, and there were a substantial amount of issues. The way the Articles was made, made it so all thirteen states had to agree to change the constitution, made it very hard to deal with these problems. Also, in this duration of time, the government wasn’t at its strong point. The colonists’ feared a central government, and the Articles of Confederation reflected that…

Words 414 - Pages 2

Brief Summary: The Stamp Act Of 1765

newspaper, and plenty of alternative kinds of paper used over all the colonies. Like today's taxes, the stamp tax had to be remunerate in rational British currency, not in colonial paper money. The reason of the tax was to support and pay troops stationed in North America after the British victory in the Seven Years' War and the French and Indian War. The Americans said there was no military need for the soldiers because there were no foreign enemies on the continent, and the Americans had always protected…

Words 277 - Pages 2

The United States Secret Service: Law-Enforcement Agency

sworn in as the head of the new bureau that same year. At the time of its creation. The Secret Service bore sole responsibility for investigating the counterfeiting of American paper currency, which had steadily been on the rise since the beginning of the Civil War.The Secret Service emerged as a product of the civil war that left the nation torn and shredded politically , socially, and economically. On April 14, 1865 former United States president Abraham Lincoln was assassinated at Ford's Theater…

Words 806 - Pages 4

Advantages And Disadvantages Of The American Civil War

The American Civil War was a time of battle between the North and the South over the continuation of the Southern way of life. This way of life was one with slaves which the South had wanted to remain in possession of despite the Northern states wanting to abolish slavery. The North possessed a massive amount of the country's production industry while the Southern states had most of the agriculture based industries. The Confederacy was dissolved in 1865 at the conclusion of the war and it reentered…

Words 1753 - Pages 8