The trade deficit with China may have cost US jobs, but it could be one of the few things keeping the greenback afloat, RT’s Max Keiser and Stacy Herbert have found.
“It’s trade deficit which maintains the US dollar as that global unit of account. Without that trade deficit, the US dollar could not be the world’s reserve currency. So that trade deficit harms American workers, but it helps Wall Street bankers,” Stacy Herbert said, discussing what is causing job losses and the recent study from the Economic Policy Institute.
Max Keiser explained that bringing China into the global economy was based “on people’s conception of what a trade policy should be,” with no global standard for money. Thus, instead of creating one, US tariffs and trade policies “replaced having a yardstick for the global economy like a gold standard.”
“You need to have a standard unit of money in the globe to have to have global trade. Once you get rid of that, as now we have no global standard of money in the world, you will open yourself to fraud and gaming the system and hopeless collapse,” Max Keiser said.
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