Greenback Blues Article

In the article Greenback Blues, by James Surowiecki, he discuses the finanical stregth of the American dollar and its decline. Even euros and Candian money have become equal to the dollar. The author writes that in theory because we spend about 1.8 trillion dollars on imported goods, other countries should be making more money than America. But in American we don’t see the effects of the decline of the dollar because of countries like China. China helps prop the american dollar up by lowering the cost of their goods inorder to compensate for the decline of the american dollar. China lowers their prices because America is their biggest consumer of their chinese goods, and is their prices were to high they wouldn’t have as much of a fluid economy. As a result, China is actually loosing money or atleast not making as much money as they possibly could by lowering their prices to help out the American dollar.