Fed Extraordinary Economic Trade Theory

All along, Americans have a “market economy” and “free trade” advocates and practitioners of itself. But in recent years, both the Government the strength and frequency of intervention in the economy, and trade disputes or to stir up trade barriers, but the United States top.

From this, the Americans idea of a “market economy” and “free trade” is the premise has been favorable.

Sino-US exchange rate issue in the dispute after another today, once again see a news release said the Fed will once again stimulate the policy and will announce a purchase in the next few months, billions of dollars worth of U.S. treasuries plan. As we all know, when the central bank to buy bonds when money is put to the market. The market with money, it means that the money supply to increase the market, but also will promote the national currency prices lower.

Although a long time, the U.S. financial officials have been the “strong dollar” talks about the slogan, even in the dollar price drop in 2009 is no exception. In fact, the so-called “strong dollar” is nothing more than self-deceiving way of saying the Americans. The real way is to constantly push the dollar lower, in order to promote the competitiveness of U.S. products, increase employment.

And the so-called “strong dollar” and “market economy” as saying the Americans in the “free trade” approach is also very interesting people.

In the past week, have seen more news about China, the United States will impose anti-dumping tariffs on the products, which include brass, wood flooring, coated paper and other products.

Any serious study of free trade theory, are inevitably challenged in 1817 David Ricardo’s famous “comparative advantage” theory, which he exchanged the British woolen cloth case for the history of Portuguese red wine known to students of economics. According to some lay people as well as many professional economics who recognized a common myth, confirm the comparative advantage theory of free trade is the best choice: no matter when, no matter where, regardless of whether trading partners to implement the same policy.

This theory is in fact carried out under ideal conditions. Once the country’s economic problems and the government will think of any country through the export-led economy, which in the United States is no exception.

High unemployment rate, the delay in the effective economic stimulus to boost economic indicators, the United States had hoped to reduce imports, increase exports to rescue the economy.

U.S. economic problems, in fact, is its excessive imports, to keep the foreign sale of assets or the accumulation of debt owed. And the average family, as the day from eating food even though it can maintain for a while, but they can not continue indefinitely. Which is the United States currently have to solve the problem, it will not only face the risk of the final collapse, but at the same time, the U.S. dollar for every sale of assets, take a dollar for each debt, erode the United States in the net assets.

In this context, trade protectionism, and swung the big stick of manufacturing excuses to suppress the production of the competitiveness of other countries, to become the choice of many politicians. For them, as long as have a favorable, saying one thing and doing another, or with two sets of standards themselves and others, why not have it? Perhaps for the Fed, the moment to save “the fire”, and only go elsewhere first “put on a fire.”

Author Bio: I am a professional editor from China Products, and my work is to promote a free online trade platform. http://www.himfr.com/ contain a great deal of information about muscle milk cytosport,diamond core bit,backdrops for photography, welcome to visit!

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