I think it's a salient reminder that the U.S. doesn't live in a vacuum and that Obama (or any other President) cannot simply "print" money to solve our fiscal irresponsibility and increasing debt.
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Jesus Christ--The reason for the season!
If you can read this, thank a teacher. If you can read this in English, thank a veteran.
If you're certain you know everything, there's little opportunity to learn anything.
I think it's a salient reminder that the U.S. doesn't live in a vacuum and that Obama (or any other President) cannot simply "print" money to solve our fiscal irresponsibility and increasing debt.
I wonder how something like that comes to fruition ? More importantly, we'd always have the U.S. dollar as domestic currency. What repercussions would that shift engender ?
Whenever the government prints more money and inserts it into circulation, it devalues the dollar (makes it worth less). This affects us Americans in that prices rise domestically and imports costs more. It affects foreign governments and foreign investors who buy U.S. T-Bills (issued to pay for debt) as they get get paid back with dollars worth less money. This makes those governments and other foreign investors less likely to buy T-bills and help with the U.S. debt (like China does currently).
If China is successful in replacing the U.S. dollar with the Chinese Huan as the international currency, it will cause the U.S. dollar to become weaker and foreign governments and investors will be even less likely to buy T-Bills. Even if the U.S. were to eliminate all debt, we would still be faced with a devalued currency and increased trade imbalance.
Any economist on the board can explain it better as this is merely a generalization in layman's terms. Suffice it to say, Obama's financial decisions are affecting us negatively in many ways.
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Jesus Christ--The reason for the season!
If you can read this, thank a teacher. If you can read this in English, thank a veteran.
If you're certain you know everything, there's little opportunity to learn anything.
Wouldn't a cheaper dollar make it easier for us to sell exports?
Yes yet it would, but the Chinese government keeps strict trade policies in place that makes it hard for US companies enter the Chinese market place.
The biggest problem is the devalued Yuan which their government has peg to are dollar for years, as the Chinese start to devalue the Yuan, it weakens are already weaken dollar, causing inflation. Inflation causes the dollar to loss buying power. Since commodities are bought and sold on the world market with US dollars, it causes commodities to rise in price, Example, corn, sugar, cotton(all time high) and oil..have you notice the price of gas lately.
Yes and what NTFM said. Not all countries play fair when it comes to tariffs and other trade issues.
Saw on Fox Business yesterday the Chinese may have purposely undervalued their currency by as much as 25%. They are certainly in a position to make thing bad for us domestically....as far as that moron's financial policies, Obama is the product of a socialist underclass, which feels entitled to things they do not own. Fortunately, they will suffer first as the price of food, gas, medicine,
utilities and rents skyrocket as the dollar devalues. These parasites are not benign like the remora...these (Plasmodium knowlesi, heretofore known as PK) will eventually kill the host if left untreated....
Good-by George Hello Mao Zedong
