Now the Whole World Knows: John Kerry Is a Fool

John Kerry Warns “Dollar Will Cease To Be Reserve Currency Of The World” If Iran Deal Rejected

As Jared Bernstein previously explained…

There are few truisms about the world economy, but for decades, one has been the role of the United States dollar as the world’s reserve currency. It’s a core principle of American economic policy. After all, who wouldn’t want their currency to be the one that foreign banks and governments want to hold in reserve?

But new research reveals that what was once a privilege is now a burden, undermining job growth, pumping up budget and trade deficits and inflating financial bubbles. To get the American economy on track, the government needs to drop its commitment to maintaining the dollar’s reserve-currency status.

The reasons are best articulated by Kenneth Austin, a Treasury Department economist, in the latest issue of The Journal of Post Keynesian Economics (needless to say, it’s his opinion, not necessarily the department’s). On the assumption that you don’t have the journal on your coffee table, allow me to summarize.

It is widely recognized that various countries, including China, Singapore and South Korea, suppress the value of their currency relative to the dollar to boost their exports to the United States and reduce its exports to them. They buy lots of dollars, which increases the dollar’s value relative to their own currencies, thus making their exports to us cheaper and our exports to them more expensive.


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4 Responses to Now the Whole World Knows: John Kerry Is a Fool

  1. Ron Parks says:

    Sounds to me like the Republicans (and any who join them) are being set up to take the fall for the dollar being replace as the world currency. That, of course, is pretty much a done deal but, I guess, they think they can blame the current Congress easier than Bush. If the congress doesn’t kill the Iranian deal, Bush will just have to do as a scapegoat.

  2. Phil says:

    Kerry is worse then a fool.

  3. dav343 says:

    Kerry, like his Boss is a treacherous fool

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