by Jeff Nielson
Bullion Bulls Canada
One of the great absurdities concerning the talking-heads who masquerade as “journalists”, and the laughable charlatans who masquerade as “economists” is that both groups have accepted (as truth) enormous quantities of economic mythology, without the slightest analytical scrutiny. Nowhere is this more true than with the ludicrous dogma known by the euphemism “competitive devaluation”.
Competitive devaluation is a deliberate strategy of undermining the value of one’s own currency, by engaging in monetary policies which deliberately drive down its exchange rate. This is what passes for economic wisdom in the Western world: the way to build your economy is to devalue your currency (as rapidly as possible) in order to supposedly make yourself “more competitive” in export markets.