1. Our Currency, Your Problem.
- Author
-
Ferguson, Niall
- Subjects
- *
BUDGET deficits , *BALANCE of trade , *INTERNATIONAL trade , *RENMINBI , *DEFICIT financing , *BOND prices , *IMPORTS , *ECONOMICS ,UNITED States economy ,EXPORTS & economics - Abstract
Comments on the budget and trade deficits of the United States. Clarification of the difference between the budget deficit and the trade deficit; Percentage of the U.S. economy's borrowing requirement being met by mainly Asian banks; Support of the U.S. dollar by Chinese monetary authorities out of fear a fall of the dollar against the renminbi could negatively affect their export industry; Reasons why the administration of U.S. President George W. Bush depend on Asia's support, including the fact that it limits the price of U.S. imports from Asia, raises the price of U.S. Treasury bonds and supports Bush's recovery through low long-term interest rates.
- Published
- 2005