In fact, we expected from the beginning of the year to the United States could drive down the exchange rate and implementation through quantitative easing monetary policy strategy for the release of liquidity from debt and dilute its global wealth grab.

The biggest liquidity crisis in the United States, which is a global disaster. U.S. release so a lot of money and liquidity, the global emerging countries into a “reservoir”, emerging countries are flooded. Many of these areas of emerging countries vulnerable to the impact and control of international capital, especially financial assets and commodities markets will become the object of profit-driven U.S. capital. U.S. bargain-hunting capital of the country he is equal to money, such as manipulating interest turned to the next round of dollar, the U.S. can a new round of “shears” to earn money. From another perspective, one is asked to raise the emerging countries, United States, then the money earned in these countries, on the other hand the United States is lowering itself through the formation of asset prices and then the next round of competitive advantage.

United States is the financial power, China is developing into a major industrial countries, financial power and the industrialized nations of the biggest difference is the virtual price and the physical interaction between price, exchange rate distortions in prices, the biggest impact is not physical price?

Not contest the United States and developing countries, the real economy, though Obama proposes to focus on entity. In fact, the United States from the 70s of last century entered the era of financial capitalism. Later, the operating mechanism are changed. Exchange rate is also a price, is the economic system from the price signal device point of view, exchange rate distortions in the price of the economic system actually distort the allocation of resources, this distortion is more likely to cause a global economic crisis and financial crisis.

For China, the “currency war” the biggest risk is not caused by the appreciation of the renminbi and the impact of declining export competitiveness, employment problems, but China’s monetary policy and monetary policy autonomy or lose money if the signal is not clear, China the real economic impact will be unprecedented.

China’s current low prices of export and import of high prices, is China’s national welfare subsidies the developed countries, with China’s low prices to subsidize the world’s low factor costs, long-term U.S. enjoy high welfare. Why can the United States has long loose monetary policy? Is because the United States without high inflation, high inflation if the currency does not occur too often. Why did not the United States with high inflation? Is because a large number of elements of the import of Chinese products, the low, low price of product is the welfare of the American consumer subsidies. This imbalance is that we only see the imbalance in the exchange rate on the surface, deep-seated problem is imbalance in the global price system. Why the United States and other countries dare to play the exchange rate war? The price is because the United States in control of the right to speak.

Author Bio: I am a professional editor from China Manufacturers, and my work is to promote a free online trade platform. http://www.cheaponsale.com/ contain a great deal of information about portable dvd audiovox,kodak 35mm film,stone sink vessel, welcome to visit!

Category: Business Management
Keywords: portable dvd audiovox,kodak 35mm film,stone sink vessel,