US Treasury chief pleads for 'strong' dollar - Yahoo! News
It is shocking that the Treasury Secretary Henry Paulson is depending on China to strengthen the value of US dollar. Secretary Paulson has long track record in business, therefore, he must know that when you send the economic (production) machine overseas and mass production is shifted out of your country, you are likely to have artificial economic effect on the US economy because there is no use of raw material in US factories and no wages are being paid to US labor. If the US doesn't balance trade with China, the possibility of further decline in the value of US dollar can not be ruled out. Another important fact to remember is that Bush administration has heavily relied on "borrow & spend" method of boosting economic activity with tax cut for the wealthy. These two actions are going to further hemorrhage the US economy in the long term.
Saturday, April 21, 2007
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