Wal-Mart Guilty of Currency Manipulation? Its New Low Prices Make the Dollar Artificially High
"Wal-Mart Stores is cutting prices on thousands of products in an aggressive campaign to reinforce its reputation as a discount leader, as the company seeks to reverse months of slowing U.S. sales. The company says it believes that, despite increasing consumer optimism, many Americans will continue to struggle in the months ahead. So, it is cutting prices this week on roughly 10,000 items, mostly food and other staples."
MP: In other words, Wal-Mart is engaging in a new round of currency manipulation by cutting its retail prices, which makes the U.S. dollar artificially overvalued in relation to Wal-Mart's goods. This attempt to manipulate the currency and lure customers into buying more of its products with an overvalued dollar will create job losses at Target and other retailers, and should be investigated by the government. If found guilty, Wal-Mart should be forced to stop manipulating the U.S. dollar, and should be pressured to raise its prices back to the pre-price cutting campaign levels.
15 Comments:
'Wal-Mart Guilty of Currency Manipulation? Its New Low Prices Make the Dollar Artificially High'...
Whoa! Great title!
"This attempt to manipulate the currency and lure customers into buying more of its products with an overvalued dollar will create job losses at Target and other retailers, and should be investigated by the government"...
LOL!
Hmmm, does Eric Holder really need another reason to attack freedom of choice?
If they still turn a profit, then no case. Also, would this be more akin to domestic "dumping" (remember when...?) than currency manipulation.
Unless, of course, their campaign includes something like:
"Your dollar goes further in Wal-Mart territory..."
dj
The company says it believes that ... many Americans will continue to struggle in the months ahead. So, it is cutting prices this week on roughly 10,000 items, mostly food and other staples.
Evil capitalists! Not to worry, our Dear Leader will soon offset these price reductions with tax increases.
Changing prices is market action.
Chinese authorities not allowing the "price" of the Yuan to change is not market action.
All of those who are flumoxed by the talk of currency manipulation should support the Intor. The Intor, as suggested by Nobel economist Robert Mundell, would be the international currency. All economies would trade with the same currency and thus, a level trading field. The current system is gamed now to the extent that it is tainted.
Sam Walton had U.S. flags over displays in WalMart stores to promote American made products. Now, this flag should shroud most displays at WalMart.
leaving your tortured argument about currency manipulation aside, what is walmart really saying?
"The company says it believes that, despite increasing consumer optimism, many Americans will continue to struggle in the months ahead."
translation: "no recovery yet for most americans"
walmart knows more about the condition of the american consumer than anyone.
A post like this belittling to the poster. China taxes its people and prevents them from trading freely (at least on the "buying" end) and this is equated a merchant's free price setting? For shame.
If they can cut prices now, then haven't they been gouging consumers for the last few decades?
Wal-Mart sells junk. I bought a recliner from them a year ago and it is falling apart now. Never again will I buy from them.
Brilliant post!
Well here we go again! They have greased up the 45 degree downhill slope from china to the U.S.and cranked up all the commie slaves with good motivating orders. LIKE! get to work for 60 cents[USD]a day or STARVE! China does not sell quality goods it sells junk because the people making it aren't motivated to make quality only to make income. Fight back don't buy their crap then they will have to invent social security payments to keep themselves alive.
Next thing you know those evil bastards will start giving away food to the poor for free!
Hey MP, are you trying to get invited to appear on MSNBC or something? lol
"Wal-Mart sells junk. I bought a recliner from them a year ago and it is falling apart now. Never again will I buy from them"...
Quit whining...
You wanted cheap, you got cheap...
"They have greased up the 45 degree downhill slope from china to the U.S.and cranked up all the commie slaves with good motivating orders"...
LOL! O.K. don't shop at Wal-Mart if you have a problem with perceived slavery...
I have shoes made in China and they're great and they're sold at Wal-Mart...
You can walk away from Wal-Mart with little consequence. You can't as easily get around China short of a tariff that also covers diversion to similarly profiled countries - given their manipulation of the Y-RMB to be impossibly low to reach.
"Your dollar goes further in Wal-Mart territory..."
The problem is that the goods that it could buy will end up costing you more. Thus your dollar goes further if you stay away.
LOL! O.K. don't shop at Wal-Mart if you have a problem with force by practicality...
The problem is that adverse selection removes choice. Fixed that one for accuracy.
As for what I put on my feet- they're from Altama, a US-based manufacturer. That, and they have a large customer that ensures they won't go Third World. With good care, they'll outlast several Third World-made equivalents.
The problem with cheap is that it lowers quality across the board.
"Wal-Mart Stores is cutting prices on thousands of products"
and:
"Wal-Mart should be forced to stop manipulating the U.S. dollar"
wow. So WallMart shouldn't be free to set its own prices ? Bad, bad freedom which makes people prosperous... Viva omnipotent government, like USSR and North Korea !
Is is strange I have been following this blog for a while and I don't remember having read such BS until now.
Saimon: I was being sarcastic.
Mark
Argh. I should have guess...
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