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Those are the words from
Ben S. Bernanke, the chairman of the Federal Reserve and he also stated that the Asian nations were pulling the global economy out of its downturn.
Mr. Bernanke avoided what was in many ways the elephant in the room: the value of the United States dollar. The dollar has dropped sharply in recent weeks against the euro and the Japanese yen, a move that has helped increase American exports by making them cheaper in some foreign markets. But the dollar has not budged in more than a year against China’s renminbi, which the Chinese continue to tightly manage and which many economists say remains greatly undervalued.
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2 comments:
As the Asian countries continue to rely more on there own domestic growth over export it seems to me that the Western nations will continue to weaken financially, as this trend continues there seems to be a greater and greater risk that the global economy will see swings from stable to unstable. This presents a unique opportunity for the individual and yet poses great risk to the global economy and the stability of all nations. At home we have seen people loose 40 - 50% of their investments, pay the penalty's and pull out of traditional mutual fund investments and make everything back and more, for example. All because of the market fluctuations caused by the recession and the initial signs of recovery. What will happen when contries like India and China are at par financially speaking with the United States? Or even surpass the United States and take the lead in the global economy? The UK and Canada and many other countries rely on the United States to perform in the global economy.
As I mention in my blog, the Chinese government's manipulation of their currency amounts to a systemic form of preditory pricing, pure and simple.
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