long-term imbalances in global economy

U.S. dollar and euro on the relationship between the existence ofRunning out of the market-led view that a weak dollar the U.S. government wants to use to implement their export strategy. This view is precisely the strategy from the U.S. does not understand,do not understand the dollar is no credibility to the financialfounding of the United States will Heyi Kan.

Long-term imbalances in the global economy, the world has witnessed two major freak: the high debt in developed economiesand emerging market economies, high foreign exchange reserves, the most typical is the two largest economies in Europe and America's debt ratio is far above normal More than doubled,to rely on blood transfusions for a living.


 In China and otheremerging market economies have realized foreign exchange reserves is not possible, reduction of foreign exchange reservesbegan to consciously, those who need blood transfusionscountries and economies in China who can not borrow the money, one might argue the first outbreak Debt crisis. And if whoeverdebt crisis, China's money will not give it. Therefore, the euro areaand the United States to maintain monetary credibility is moreurgent than the expansion of exports, and the only way to maintaincredibility is to create a strong currency environment. This is thefounding of the German exports in the euro area is difficultbecause the sound is completely impossible for the U.S. dollarlooking weak reasons.