In a Way, the U.S. and Asian Mercantilist Countries Are in the Same Boat.

The Asian mercantilist countries have pegged their currencies to the USD. As USD loses its value, so does theirs. Pegging a nation’s currency to another nation’s currency is corrosive to a free market.

This peg has been one of the reasons they could rise so fast. They have exported their goods to the U.S. and have bought the U.S. treasuries. They can’t sell the U.S. treasuries since it will have adverse effects on their export economy.

The U.S. wants a steady flow in exports, so it can emit more credits.

Moreover, the U.S. corporations have benefitted from the peg since it has kept their goods manufactured in the Asian mercantilist countries cheap.

It has been a reciprocal relationship, serving the best interests of a chosen few on both sides.