�You don�t promote exports with a cheaper currency. You promote exports with value added,� he said.
�Look at Singapore and Germany, which have had very successful export records for decades, with relatively strong currency. They promote exports with technology, innovation, value-added � in other words, with great products.�
He believes the U.S. program of quantitative easing, which involves the Fed buying $85 billion of U.S. bonds each month, is a mistake.
The policy is not stimulating growth, he said. Instead labour participation is dropping and inflation is low and economic growth is anemic.
Besides putting impetus into a currency war, the Fed stimulus program has contributed to a bubble in stock markets, Rickards said.
�The thing about bubbles � they tend to run a lot longer than you expect and they pop at the most unexpected times, so you ask me when it�s ready to pop � whether it�s the beginning of next year, late next year � I don�t know.�
- Source, CBC:
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