Saturday, January 24, 2009

IOU USA and the United States Leadership

China saves 9% of GDP and the US borrows 7% of GDP. If China would appreciate their currency from 7 to 1 to one to one Yuan to US dollar. Then we would only owe China a trillion dollars versus the 7 trillion we owe them currently. Obviously by keeping the current exchange rate it's benificial for US and Chinese business people who sell product in the states. As the Yaun appreciates then the jobs in China would be be shifted. Jobs would go back to the US or to another less developed part of the world like southeast Asia. Some interesting videos below:

1 comment:

Anonymous said...

Wow your insight is dead on