United States of America

Dear Readers,

(Source: fundcn.org)

For the last century, US has become the largest powerful due to the Bretton woods period when US = 1 once of gold leading to building the largest gold reserve of the world and also gradually increase the value during the boom of the pre-subprime period (Indranarain Ramlall, 2010).

However, according to steps of the “subprime crisis USA has weaker his holding reserve and moreover the capacity of investment of the country” was affecting his economic power (Herman, M. Scwartz, 2009). The second fact, due to high unemployment rates and small liquidity the fed (Federal Reserve Bank) and the government has lost the internal dynamism causing a gradual increasing of the deficit of the currents account due to the increasing of imports and within smaller investment also emphasis the deficit with gap X / M (exp/imp) because, domestics firms are loosing competitiveness advantages from the world and moreover, the BRIC’s (emerging countries, Brazil, Russia, India, and China)

Furthermore, the weak dollar permits, the country to gain external investments shown by the increasing (W. Kolb, 2010) of the Fed stock value (Bloomberg in appendix).

Those facts pinpoint a discordance of US and China needs in terms of currency value and interne growth.