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I basically agree with Marichiko. Normally, high inflation, trade imbalance, domestic unrest, would affect a currency.
In the case of a trade imbalance, the system would normally be self adjusting. For example, if we bought too much in goods from China, our currency would be devalued, Chinese goods would become more expensive, American goods would become cheaper for the Chinese, and the trade imbalance would slow down, stop, or reverse.
This is why the US is demanding that China stop pegging it's currency to the dollar, which prevents this from happening.
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