U.S.-China relations will shape the future of the world in every way. Alas, those relationships have been deteriorating for a long time. In fact, the only
One could ask the question: how did the financial system got us into such a mess? First one has to look at the value of anything and nothing… On average:
But the dollar maintained its global dominance, and the Saudis turned out to have strong financial incentives for keeping the overwhelming bulk of their wealth in dollar-denominated investments. Oil revenue to the tune of $100 million a day was pouring into the Saudi Arabian Monetary Agency (SAMA), the nation’s central bank, whose decision-making process is illuminated in a memoir,
Packing for India, by David Mulford, one of a handful of foreigners hired by SAMA in the mid-1970s as an adviser. SAMA’s dilapidated offices typified the desert kingdom’s detachment from modernity communication with the outside world was limited to a single balky telex machine, according to Mulford (who later became US Treasury undersecretary for international affairs). And Mulford recalled that in addition to the constraints imposed by antiquated technology, SAMA’s investment choices were dictated to a significant extent by liquidity that is, the ability to buy or sell without causing prices
How Can Biden Bring Back Manufacturing Jobs? Weaken the Dollar
Critics of a strong currency say it hurts American factory workers by making imports cheap.
Revere Copper Products in Rome, N.Y., once had two plants and nearly 600 workers. Today the company employs about 300 and operates only one plant.Credit.Joshua Rashaad McFadden for The New York Times
March 1, 2021
President Biden has made reviving American manufacturing a top priority. To deliver, he may first have to deal with something even more fundamental to the U.S. economy: the strength of the dollar.
Because a strong dollar lowers the price of imports and raises the price of exports, it gives foreign companies an advantage over American competitors and can drag down U.S. employment.