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Book Reports
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6 / 1678 |
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Overnight, devaluation can lower the value of a nation’s currency which in turn lowers the buying power for its citizens relative to other currencies. An example of this can be recalled from the 1997 Asian Financial Crisis, which started when the Thai Baht was devalued and Thailand’s stock market lost 75% of its value...
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Within a matter of days, the people of Thailand saw their savings destroyed. In essence, devaluation is the ultimate weapon since it can destroy an entire nation, but leave its wealth (ie. infrastructure) intact. One can quickly see why this power must never be transferred to private hands, yet this is exactly what happened to the United States in 1913...
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In the previous section, Hobbes introduced the concept of "Power" and the restless human appetite to achieve it. He divides power into two kinds: Natural and Instrumental. Natural power derives from the faculties of the body or mind, such as stren...
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