On Outsourcing, the Economy and the United States | VirtualWayfarer.com | A Place For Intellectual Musings

"Unlike China, Japan, India, Mexico or any other foreign nation, the US is not truly an independent currency. As the de-facto world currency, the US dollar is the central quay to which all of the world’s other currencies are tied. When we began artificially deflating our currency we began destabilizing the world economy. Instead of offering a quay that the world economies could tie to, we quickly became a lead weight pulling them down. We can’t have it both ways. We can’t be the world’s economic super power/global currency of choice AND at the same time be de-valuing our dollar to drive up exports. This process began destabilizing the world economies and has, in my opinion, resulted in a lot of the credit and economic issues we’re currently facing. It also helps explain why the US is suffering, but stock markets around the world are in equally - if not worse - shape." (Emphasis Mine.)