Doubts Expressed As Bush Presses Asia on Currency

Article Abstract:

Economists say that the Bush Administration policy of pushing China and Japan to let their currencies rise against the dollar, while popular with American manufacturers by making Asian imports more expensive and American exports less expensive, could create more problems than it fixes, insofar as China and other Asian countries are helping to finance the mushrooming U.S. federal budget deficit with their gigantic purchases of Treasury securities, and this increased demand for Treasury securities, while keeping their own currencies artificially low against the dollar, has also helped keep interest rates low. A sudden change in policy, economists warn, could have dire consequences that would be destabilizing for China, the U.S. and the entire world. If China and Japan were to start selling Treasury securities, it could drive interest rates up.

Japan, General services, International economic relations, Purchasing, Political aspects, Treasury securities

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Bush's Choice: Anger China Or Congress Over Currency

Article Abstract:

China's foreign exchange policy, which ties the yuan to the American dollar, is keeping exports cheap, and building an ever growing trade surplus with the United States. China has bought over $200 billion in United States securities over the last year.

United States foreign relations, Monetary policy, Yuan (China)

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The Dollar Is Down: Is It a Cause for Concern?

Article Abstract:

The value of the American dollar has fallen over 40 percent against the euro in the last two years. Economists have differing views on what effect this will have on the economy in the United States and around the world.

Public Finance Activities, Forecasts, trends, outlooks, National Government Liabilities & Debt, Labor Distribution by Employer, Forecasts and trends, Statistics, United States economic conditions, Market trend/market analysis, Bush, George W., National debt, Dollar (United States), Public debts

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