As China develops more international trade agreements that don’t use the American dollar, our country moves further away from the biggest economic movers and shakers in the world.
Austin, TX (PRWEB) July 23, 2012
Both a foreign country and America’s own monetary system are bringing economic difficulties to new levels, and Absolute Wealth’s daily editorial column is determining the implications that could result.
In Thursday’s The Gorrie Details, Absolute Wealth Managing Editor James R. Gorrie addresses the automatic response people generally have to accusations of the Federal Reserve of ruining American money. Their responsibilities are to protect and promote American money, not destroy its capabilities, but the column argues otherwise.
“One of the problems has been that the increase in the supply of dollars in the world has devalued the dollar relative to some of our trading partners’ currencies,” said Gorrie. “Another fly in the ointment is that for our other trading partners, the inflationary impact of the Fed printing dollars like they’re going out of style hits them hard. That’s because most international trade transactions are done in dollars.”
And so, as China develops more international trade agreements that don’t use the American dollar, Gorrie said that our country moves further away from the biggest economic movers and shakers in the world.
“Given that China has been given special treatment in buying treasury bills, along with the right to enter the US banking industry, there doesn’t seem to be any other conclusion,” said Gorrie in the column. “I may be wrong—and I hope I am—but it certainly looks like the Fed is working hand-in-hand with China in leading the dollar down the road to oblivion.”
Gorrie’s articles on economic issues help to inform people of their financial options, or lack thereof, as a result of the big, impactful happenings in the private and public sectors.
James R. Gorrie has more than eighteen years of financial advisory experience. He holds a BA in economics and attained doctoral candidacy in international relations and comparative politics, with an area specialty in international political economy. Gorrie writes daily articles on current macroeconomic and investment topics, Special Reports, and analyses on geopolitical events around the world that affect the market.
Absolute Wealth is an expert team of real investors and advisors devoted to identifying winning strategies for exceptional returns. Members subscribe to the company’s Independent Wealth Alliance for professional investment analysis and recommendations on the latest market trends and progressions. For more information and subscription instructions, visit AbsoluteWealth.com.