China Follow Up

To follow up on a recent article posted by Billy Ray Valentine, Capricorn, please see the attached article that indicates China’s increasingly vocal criticism of the U.S. dollar’s status as the world’s reserve currency. As you may know, the reserve currency has many benefits for U.S. consumers, particularly the ability to buy useless trinkets, video games and knick knacks from Asian exporters at cheap prices (and more importantly energy commodities from the rest of the world). With the dollar at artificially high levels, some argue it prevents our manufacturers from competing on even footing with the rest of the world. As a result our main exports are in areas where we have major strategic advantages, including technology, pharmaceuticals, useless financial products (aka CDO’s, subprime mortgage debt), and being fat (aka fast food restaurants):

http://www.marketwatch.com/story/dollar-slips-against-euro-pound-steady-vs-yen

– Jack

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