House of Paine

why stig's my man....

 stig has a  hideous knack
      he can make bright concepts
                       dull and ugly

but he is "very "
        too often 
as my daughter used to say 
   


on the beam ......




========================================


"If China were to contemplate a revaluation, 
it should consider as an alternative 
the imposition of a tax on its exports" 
stigasaurus rex 
 
i agree 10 k % 


 
to me the super reval 
to end the greta tilt  
is 
a global north south deal 

and 
 
in the very probable  
absence of that happening  
 
i'll take  
a prc export tax over  
 a unilteral rmb forex nose dive  
 
 
stig's reasons  
 
 
first they " Both  have similar effects 
on Chinese exports "

 
and

"an export tax would provide 
  an empirical answer  
to the question
   of whether a revaluation would work" 
 
 
 
 
 "an export tax  would not lead 
      to financial losses  
for Chinese holders 
of dollar-denominated assets" 
 
nor lead to 
 
"further deterioration in the distribution of income... 
... increasing the already large rural-urban wage gap" 
 


" Revaluation  unlike the export tax
 would put downward pressure 
on domestic Chinese agricultural prices" 
 
.


 
 
 
 an ex tax
 " could generate substantial government revenue for China" 

translation capture some yankee super profits 
 

and best of all.....
 
 
 
" an export tax would not reward currency speculators".  
 
 
 
joe ain't wall street's  Bitch 

----------------------------

ps stig doesn't mention

fdi would still be a bargain