U.S. Foreign Policy Falling by the Wayside

The United States has lost much of its ability to leverage foreign policy. We used to be world leaders, policy creators and a model to be followed. Now, after tarnishing much of our legacy during the Bush administration and allowing our economy to rot for nearly four decades, the U.S. is on the outside looking in.

A perfect example of our standing is our approach to international currency manipulation, and the prosecution of manipulators. There are various international statutes that were signed and agreed upon by large consortiums of the global community regarding how countries must deal with their currencies.

Nonetheless, China and several others are allowed to predatorily peg their currencies against our own, massively devaluing them for the sake of boosting exports. This is an overt violation of international law, yet is goes unpunished. The Chinese government has built up so much leverage against the U.S., that they no longer push our policies.

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The Chinese government holds so much of our currency and Treasury bonds that it can hold sway over U.S. policy. In the past few months and weeks high level diplomats like Hilary Clinton, Nancy Pelosi, and John Kerry have visited China. None of them have brought up currency manipulation. Furthermore, none have brought up vital issues such as the environment, labor safety or human rights.

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http://economyincrisis.org/articles/show/2940

The Bush* Cabal "foreign policy" was. it is better for America to be feared than loved. Obama's foreign policy will be somewhat different. He will still own a "big stick" but it will probably not be mentioned much if at all. Emphasis will more than likely be how can we work together to better all.

They are quietly spending all the dollars that they are propping up (for now) and slowing the inevitable devaluation because (for now) they want a "strong" dollar because they have so many of them.

The currency manipulation works both ways. Right now, our government is forced to kowtow to the Chinese in order to keep the dollar strong and our economy afloat.