US Dollar poised to take yet another major blow under Obama.
While President Obama continues to celebrate winning a toothless climate change agreement with China, he's hoping Americans don't notice that his environmental alliance with the Chinese puts America into a perilous financial situation.
The climate change agreement that President Obama worked so hard to solidify with the Chinese means huge repercussions for the U.S, including increased EPA regulations and higher fuel prices. Meanwhile, China offered only vague promises that will have little effect on their pollution levels.
While President Obama was distracted with trying to save the environment, instead of middle class families, China was striking an energy deal with Russia that will jeopardize the value of the American Dollar.
China agreed to buy 30 billion cubic meters of gas annually, for the next 30 years, from one of Russia’s oil producers. China will pay for all this fuel with Chinese Yuan, instead of the U.S. dollar. The U.S. dollar has long been used for global trading and as the world's reserve currency. That global demand helps keep the dollar's value strong. But, it won't stay that way with dominant countries, like China and Russia, refusing to use it.
Deals like this energy agreement between Russia and China create uncertainty for the U.S. dollar. Economic matters on U.S. soil aren't helping the dollar either. President Obama has failed to reign-in borrowing and the national debt. Soon, the interest on the federal debt will be unsustainable. Both the domestic and foreign economic climates are problematic for the value of the U.S. dollar.
If the world, taking their cues from China and Russia, move away from the U.S dollar as their trading currency, Americans will face higher interest rates and higher prices. China is actively threatening the economic stability of the U.S. But, instead of condemning China for putting Americans at risk, President Obama was shaking hands with them.
Makes you wonder what's next. Sound off in the comments below.