Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Chinese set to back the Yuan with gold... new world reserve currency?
>
Reply to Thread
Message:
<p>[QUOTE="InfleXion, post: 1622695, member: 29012"]The value of a good doesn't change just because a currency gets weaker or stronger. It is the same amount of buying power out of pocket regardless. If the yuan strengthens then it can buy more goods for less cost. It can also buy more US dollars for less cost. The cost to create the part would go down with a stronger currency because the materials and energy cost less as the currency can also buy more of those. </p><p><br /></p><p>Where I will agree with you is with wages though. The wages are not going to go down just because the currency gets stronger, so that is where the cost of the item will not go down to account for the stronger currency. So ideally those wages would have to drop accordingly or people would need to be laid off which is where I think you were going. A loss in wages wouldn't really hurt anything since the buying power increased, but the loss in jobs is another story, and that will depend entirely on the employer. Thank you for helping me come to a better conclusion.[/QUOTE]</p><p><br /></p>
[QUOTE="InfleXion, post: 1622695, member: 29012"]The value of a good doesn't change just because a currency gets weaker or stronger. It is the same amount of buying power out of pocket regardless. If the yuan strengthens then it can buy more goods for less cost. It can also buy more US dollars for less cost. The cost to create the part would go down with a stronger currency because the materials and energy cost less as the currency can also buy more of those. Where I will agree with you is with wages though. The wages are not going to go down just because the currency gets stronger, so that is where the cost of the item will not go down to account for the stronger currency. So ideally those wages would have to drop accordingly or people would need to be laid off which is where I think you were going. A loss in wages wouldn't really hurt anything since the buying power increased, but the loss in jobs is another story, and that will depend entirely on the employer. Thank you for helping me come to a better conclusion.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
Chinese set to back the Yuan with gold... new world reserve currency?
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...