We could have managed the dollar, to maintain its "reserve currency" status.  But we may have lost it. Running up the largest trade deficits in human history do not inspire dollar confidence in currency markets.  

China bought dollars with its trade surplus, but is now "diversifying".  That means selling dollars.  Selling dollars means lower values for the dollar.

Losing reserve currency status has a domino effect in reducing American influence in the world.  

If we pursued balanced trade every year, we would not be in this position.  U.S. jobs, manufacturers and farmers would be growing in strength each year.  It was a tried and true strategy, but was abandoned. This year may be looked back on as the turning point for the dollar's loss of primacy.

TrackBack URI for this entry

Comments (0)

Subscribe to this comment's feed

Write comment

Name

Title

Comment

smaller | bigger

Subscribe via email (Registered users only)

I have read and agree to the Terms of Usage.

Add Comment