Devaluing currencies to ease the debt burden

If your debt is index linked, as much of the UKs is, then devaluation doesn't inflate it away, but it can increase competitive advantage.

It's allowed because big business has our politicians in their hip pocket.

They have devalued sterling by 20% and use the excuse that it makes our exports cheaper. However the truth is that big business bosses have inflated the price of their goods so we aren't selling anymore - the trade deficit is still as bad. What's happened is that the big bosses have just trousered the price increases:

"Britain's bosses have been accused of ignoring economic reality after boardroom pay rose by 55% in a year"
http://www.guardian.co.uk/business/2010/oct/29/ftse-boardroom-pay-soars

If there are riots and strikes when governments try to lower wages, then it seems the smart option to devalue the currency, which has the same effect, while making exports more competetive. Quantitative easing ought to have this effect. It also reduces the national debt.

I would participate in this interesting discussion if even for a fleeting second I believed Sir Denis was serious about his question.

?

melanus makes another stellar comment.

I wonder how long before the asylum catches him and locks him back in his room?

room 007, no doubt.

obviously has a superiority complex

All I want to know today is how much money did Mr Bean made in his sleep last night?



Not a superiority complex, just good common sense not to participate in a troll-like post. Sir Denis can take most posters on here to school on economics, so I rather have my doubts that he doesn't know why "this tactic is allowed". He's playing with you. Thanks, but I'll sit this one out.

and there was me thinking i was clueless!

come on melanus, do the world a favour and turn yourself in.[:(]

o  put your mind at ease my smallish AUD long postion is currently behind.

Just go to sleep Mr Bean, you'll wake up richer again I assure you.