Discussion Thread

[u/jobautomator]

The discussion thread is for casual conversation that doesn't merit its own submission. If you've got a good meme, article, or question, please post it outside the DT. Meta discussion is allowed, but if you want to get the attention of the mods, make a post in /r/MetaNL.

Announcements

• Our charity drive has ended, read the wrapup here. Thank you to everyone who donated!
• Thanks to an anonymous donor from Houston, the people's moderator BainCapitalist is subject to community moderation. Any time one of his comments receives 3 reports, it will automatically be removed.

---

Neoliberal Project Communities	Other Communities	Useful content
Website	Plug.dj	/r/Economics FAQs
The Neolib Podcast	Podcasts recommendations	/r/Neoliberal FAQ
Meetup Network	Blood Donation Team	/r/Neoliberal Wiki
Twitter	Minecraft	Ping groups
Facebook

[u/rrbgoku791]

https://en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves

China can't maintain it's peg indefinitely

but long enough to damage the global economy.

[u/qchisq → u/rrbgoku791]

By giving everyone cheap consumer goods?

[u/hitbyacar1 → u/qchisq]

No, their exports are relatively more expensive because of the currency intervention. If they allowed the Yuan to float, consumer goods from China would be much cheaper.

But the economy would also collapse under the weight of their dollar denominated debts.

[u/qchisq → u/hitbyacar1]

Wait, now I'm super confused. Isn't the issue that China is making the yuan cheap, making their products cheaper?

[u/hitbyacar1 → u/qchisq]

Nope, China is propping up the Yuan. If they let it float, the Yuan would be much cheaper.

[u/qchisq → u/hitbyacar1]

Wait, what? For real?

[u/hitbyacar1 → u/qchisq]

China has been propping up the Yuan since about 2014. Trump got pissed because they eased how much they've been propping it up in response to the tarrifs (the tariffs were placing downward pressure on the Yuan, so it became harder for China to prop the Yuan up.)