The United States during its current hard-hit economics times appear to be looking at trade as an alternative to improve its current situation. This sudden shift of attention to trade can possibly be due to the fact that the burgeoning China is beginning to supersede the global market. The United States has found that the Chinese yuan may have been intentionally undervalued, allowing for China’s growth, especially in imports. To subdue such growth, the United States Senate has passed the Currency Exchange Rate Oversight Reform Act as a means to create a regulatory system that would penalize nations that appear to be undervaluing their currency. This reaction to a modern “reversal of fortune” scenario is quite interesting to observe because it is apparent the United States fears losing its stronghold on economic superiority. If such legislation eventually is implemented, United States will be leading itself to further demise. Potential expansion in exportation and employment may prove to be futile to lost trade relationships, especially with the growing China. Such action is terrible especially because China holds much of the United States debt.
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