Thread: Trade Expert: 50% Dollar Devaluation Necessary

Trade Expert: Dollar Devaluation Necessary

Monday, 07 Mar 2011 12:33 PM
By Greg Brown

Author and trade expert Clyde Prestowitz warns that it would take up to a 50 percent devaluation of the dollar against the Chinese yuan and an end to the greenback as the global reserve currency to truly right the global trade economy.

Prestowitz is founder and president of the Economic Strategy Institute and formerly a counselor to the Secretary of Commerce during the Reagan Administration.

In a post at the website of Foreign Policy magazine, Prestowitz details a list of scheduled global banking and trade discussions. Then he dismisses them all, saying that the real problems facing the U.S. economy relate to a fundamental imbalance that cannot be negotiated or smoothed over by simply talking.

“At present, virtually all the world's economies are attempting to grow and create jobs by exporting primarily to the United States, which, despite the recent economic crisis, high unemployment, and a fragile recovery, is still acting as the world's buyer of last resort,â€

as soon as that happens that 14 Trillion National Debt becomes 28 Trillion over night