Why do countries devalue their currency to help their export industries? What is the point of that? If you make your currency worth less, it makes the goods and services you sell cheaper, so you can sell more of it. But how does that help? The money your economy receives is also not worth as much.
A company sells goods for 1,000,000 Bernd-Dollars, worth 1,000,000 USD, to foreign buyers. Now, Bernd-Dollars get devalued hard, so that one Bernd-Dollar is just worth 0.10 USD. The company can now sell ten times as much. Great success! But wait, the 10,000,000 Bernd-Dollars they receive are still worth 1,000,000 USD. So how does that make sense at all? You just made your people work harder for nothing.
So what is missing here?
Bernd
Sat, 08 Mar 2025 06:14:38 GMT
No. 25591361
>>25592141
(major) shareholders are so incredibly retarded that the only thing they care about is seeing numbers go up, whether or not those numbers going up is actually the result of increased profits. They know absolutely nothing about the industries they invest in and it fucking shows. They're all corrupt jews who depend on daddy's money and pretend to be cool businessmen or whatever.
Bernd
Sat, 08 Mar 2025 07:33:41 GMT
No. 25591582
If it's really the country doing this, then it's public relations minister causing it.
Bernd
Sat, 08 Mar 2025 07:36:53 GMT
No. 25591596
>>25591599
you calculate in your own currency, not the foreign one obviously.
Bernd
Sat, 08 Mar 2025 07:37:31 GMT
No. 25591599
>>25591613
>>25591596
Maybe you can afford to, but I calculate in foreign currency because my country was sold more times than a polish kurva.
Bernd
Sat, 08 Mar 2025 07:39:30 GMT
No. 25591608
Countries that do that have decided to favor their exporter sector for some reason, be is as a developmental strategy or as a way to counter chronic trade imbalances
Bernd
Sat, 08 Mar 2025 07:40:47 GMT
No. 25591613
>>25591617
>>25591599
you are an idiot, not a company
Bernd
Sat, 08 Mar 2025 07:41:53 GMT
No. 25591616
It's also the employees who you have to pay less money "in real terms". Not in your currency of course, there it stays the same. It's all a short-term fix though, that is correct.
>You just made your people work harder for
nothing.
That is one way to put it. The other way would be "you just make them put in the work that is actualyl necessary for the current system or living standard"
Bernd
Sat, 08 Mar 2025 07:42:19 GMT
No. 25591617
>>25591653
>>25591613
I'm talking about my shithole country selling out so hard that it killed its own currency and now there's only EUR, retard.
Bernd
Sat, 08 Mar 2025 07:45:50 GMT
No. 25591637
I think exporting inflation isn't possible in the modern globalist world. It's more about increasing trade partners, unless people were hoarding the currency for speculation purposes but it's not like people are gonna be like "Yeah, there's a couple trillion locked in vaults so we're not going to count that towards the value of a x".
Back in the old days you could physically take your surplus coinage and dump it elsewhere to increase the value of domestic coinage. Or to get rid of the coins minted with less than pure metals.
If you really want to see what tanks the value of a currency look into fractional reserve lending. tl;dr is that a bank loans out 90% of your money, those who receive the 90%(including you) leave it in the bank, the bank loans out 90% of those deposits, rinse and repeat forever.
Bernd
Sat, 08 Mar 2025 07:50:01 GMT
No. 25591652
More jerbs, good boy points or something
Bernd
Sat, 08 Mar 2025 07:50:53 GMT
No. 25591656
>>25591653
it's not ok, subhuman shitskin, go back
Bernd
Sat, 08 Mar 2025 08:00:55 GMT
No. 25591696
Now imagine if you can't devaluate the currency. Companies have to shut down immediately, or you have to renegotiate all the salaries and wage one by one.
Now you have screeching unions and socialist populists on your back.
Bernd
Sat, 08 Mar 2025 08:26:27 GMT
No. 25591806
wages of wagies are fixed in your country's meme currency and dividends are paid in US dollars. so if you get the government to devalue the meme currency, your margins get wider and you get more US dollars that you can spend on things that matter and not on smelly entitled wagies who never in their life said thank you for creating my job sir
Bernd
Sat, 08 Mar 2025 10:07:05 GMT
No. 25592119
>>25592128
>>25592270
>>25591354
Mainstream economics is made up by jews to justify the current gov policy.
I prefer Austrian School of economics. They only make sense. We should switch on gold or crypto and disband FRS/Central Banks
Bernd
Sat, 08 Mar 2025 10:08:41 GMT
No. 25592125
The the difference is between nominal revenue (the raw amount of Bernd-Dollars) and real economic activity (jobs, production, and overall economic health).
Bernd
Sat, 08 Mar 2025 10:09:28 GMT
No. 25592133
> their currency
> your currency
Firsties are so naive, like little children they are.
Bernd
Sat, 08 Mar 2025 10:12:28 GMT
No. 25592141
The thread is literally full of midwit takes.
For example:
>>25591361
> (major) shareholders are so incredibly retarded that the only thing they care about is seeing numbers go up
Yeah, you really figured it out. You a genius. They only care about magical number going up, they are too low IQ to think about the actual value. They not high IQ like you.
Bernd has commie tier understanding of economics. Are 90% of bernds just like that stoner retard friend we had as teens who has no idea how anything works, but always some braindead theory about stuff?
Bernd
Sat, 08 Mar 2025 10:14:14 GMT
No. 25592147
>>25592500
You're missing the point that the foreigner is more likely to buy because your goods are now cheaper. They could have gone elsewhere meaning you don't even make a sale.
You're not comparing selling less of Product X for Y money versus selling more of Product X for Y money. You're comparing a sale even existing to no sale at all.
That's why cheaper currencies are good for exporters. More sales actually exist and that means more cash coming into the country.
Bernd
Sat, 08 Mar 2025 10:43:26 GMT
No. 25592270
>>25592119
>>25592128
>>25592260
There's literal scientific papers about it there's no point arguing about it.
Bernd
Sat, 08 Mar 2025 11:42:55 GMT
No. 25592500
>>25592540
>>25592147
>That's why cheaper currencies are good for exporters. More sales actually exist and that means more cash coming into the country.
Germany is a good example. Their nomenklatura kept most of the car industry profits in the pockets of the establishment. German people never benefited as much as they deserved. No tax cuts, instead a flooding with milions of followers of a violent death cult.
In turn the currency didn't appreciate and they thought the economy will remain strong as usual. A strong currency actually forces you to keep innovating and researching. Because you focus on the actual thing you sell instead of economic "painkillers" like currency manipulation. Now Germany sits on inordinate amounts of liabilities thanks to socialist promises. And can't attract entrepreneurs anymore.
Bernd
Sat, 08 Mar 2025 11:55:51 GMT
No. 25592553
>>25592540
nu rights like to use words they don't comprehend.