I forgot to explain why we use dollar as a standard trading currency
previously.
In the past thirty to fourty years, US is a large market which absorbed unlimitted products from all over the world, this phenomina
brought the world with thirty to fourty years of propersity.US, traditionally, is a country of big trading deficit, however, it won't
hurt the US economy with dollar as international trading currency, which will not generate any foreign debt for US. US just spreaded the world with dollars in exchange for unlimitted foreign goods flooded
in the US market. As time goes by, when most of US industry is over
capacitied, the US corps go outside to look for overseas market to
sustain domestic job market, the conflict started from here.By exporting lots of goods from US corp to the rest of the world, which will bring back huge amount of dollars, and will drain out huge dollar
reservation from other countries, which are used for import for other countries (we start to see dollar is over valued recently, more goods
tracing for less dollar reservation from other countries, which also means deflation, and less international trading later). The fact is
US is no longer a huge market which can absorb unlimitted exports from the rest of the world and US corps also start to export to sustain domestic job market, while at the same time we are still using dollar as standard trading currency and the rest of the world still think US
is an unlimitted market and try to export unlimittedly to US. This is where the trading unbalance start with Japan, with China, with the rest of the world. To fix this problem, we need to find another market
which can absorb unlimitted exports from the rest of the world for the
worldwide prosperty of next fifty years, and at the same time will not destroy the currency of that special market.
China with its 1.4 billion of population will be a huge market to absorbe the worldwide products in the next fifty years, and to make China the biggest reservoir for the worldwide products, we should use China's currency as the standard international trading currency so that China can import unlimittedly from the rest of the world in the
next fifty years. Or we need to change the current trading system, i.e
"trade goods with goods". |
