"In other words, if President Trump wishes to address America’s merchandise trade deficit (balanced to perfection, of course, by a capital accounts surplus) he will find that allowing the dollar to be used as the global currency is the real snake in the economic woodpile. The dollar’s burden as the international reserve currency, not currency manipulation by our trading partners or bad treaties, is the true villain in the ongoing melodrama of crummy job creation."
~ Ralph Benko, from his article 'President Trump: Replace The Dollar With Gold As The Global Currency To Make America Great Again'
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1 comment:
I disagree with the Ralph Benko quote...
"balanced to perfection"... is a kinda inane comment... ( one has to borrow before one can spend beyond ones income. Capital acct. surplus simply shows that one has the borrowed money ie.. A debtor Nation).
How on earth is the dollar , as the reserve currency, responsible for crummy job creation..??
The dollar , as the global reserve currency, simply means that USA can get away with expanding its money supply , to a far greater extent than most other countries..
I cannot see how it could be a "burden" , to be the worlds reserve currency..
A few yrs ago I had a friend who was involved in small- medium size production businesses in NZ.
He said that a few boat builders closed up shop in NZ , gave all their intellectual property to Chinese companies, and became importers of those boats from China. This one example shows how job creation is affected by outsourcing production to another country.
Its got nothing to do with ..." the dollars burden as the international reserve currency".
I'd also suggest that China behaves like a mercantilist country, ..instead of accumulating gold, they have accumulated $US, in the form of foreign reserves....
https://en.wikipedia.org/wiki/Mercantilism
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