Wednesday, 12 August 2015
Exporting to Mars and Jupiter.
The idea that an economy can benefit from, or recover via increased exports has always been popular. Of course that idea is valid in the case of a country with a persistent external or “balance of payments” deficit. But not otherwise.
Unfortunately that blindingly obvious point doesn’t seem to have got thru to the world’s leaders.
For example David Cameron is enthusiastic about increasing British exports, and so is Obama in the US.
And then the Germans constantly lecture the rest of the EU on the need to become more German, i.e. get themselves ridiculous balance of payments surpluses.
Plus Draghi has done nothing to bolster the Euro, presumably because he thinks increased exports from the EZ would be beneficial.
And now the Chinese are in on the act. They’ve just devalued their currency so as (at least according to the BBC) to enable them to export more.
I assume the above nutters have done some market research on Mars and Jupiter so as to make sure there actual customers there who want to buy stuff from planet Earth when every single country on Earth has an external surplus.