Washington has chosen to depreciate the dollar as a tool to cut down on its foreign debts since World War II
A group of 130 lawmakers from the United States sent a letter last Monday to the US Treasury calling on the Obama administration to pressure China on its exchange rate.
Accusing the Chinese government of subsidizing exports, they claimed that the “artificially undervalued” yuan is unfair to foreign competitors and puts China’s exporters at an advantage.
This laughable accusation exposes Washington’s conspiracy to mislead people from the real currency manipulator that has caused turbulences in the global financial market: the US. To transfer the impacts of the global financial crisis to foreign countries, the Obama administration has adopted a monetary policy that only aids its own economic recovery.
When the global financial crisis began to careen at the start of last year, nearly every country turned to a “de-leveraging” financial policy to reduce financial risk. But the US, by taking advantage of the dollar’s position as the world’s leading currency, attracted a large amount of capital back into the US to balance its financial debt.
As the crisis began to subside in early last March in China, the US opened its fluidity valve and embraced a monetary policy of quantitative easing. Consequently, the US capital market experienced a robust rebound, which, along with a large range of depreciation of the dollar, has prodded the US economy, especially its foreign trade, to recovery.
