The United States is one of the most powerful countries in the world with no doubt. I always trust Trump no matter what he does because it's difficult to become a leader of a country and manage everything under control. I believe the things he does now are reasonable and he is making a road for next step to both this country and himself. Everyone knows a country's economy is like a cover to a country. The use of this cover page is to attract people to buy this book just like to attract people to invest in this country. Many people have been attracted to America so they immigrate and invest companies in this country. Although its economy is fragile, it can't break easily.
China is the second largest economy country in the world. Compare China to America, China is like a growing kid to an adult though it has thousands years history that nobody cares even Chinese. The article mentions that China's capital outflow problem is significant. I had no idea what that is before I read this article. To put in simple words, capital outflow is the difference between the money value. The higher the value is, the more benefit the country can receive. For example, China buys one million toy from America, five dollars per one toy so China needs to give five million dollars to America but actually China is giving thirty-four million dollars to America. America can receive this large amount of RMB only giving away five million dollars. This trade indicates the reason why China's capital outflow problem is huge which is the value of RMB is too low compared to America.
This problem is not only because of this type of business trading but also some personal illegal outflow. It has to bring up the bad corruption China had before Xi got in his position. A lot of corrupted government officials transferred their money to America, Canada, Australia, and some other countries before or after they were arrested. They usually transferred their dirty money through underground money shop. Some people even made a fake certification to the government saying that they had a company abroad so they could "legally" transfer money to their "company" which is their personal accounts which protected by other countries. Some people had dual citizenships so neither sides of countries could do nothing with them and the money. These people created one of the biggest outflow in decades.
The high value the dollar is it's a benefit for America for paying the debt but it doesn't mean that high value is always a good thing. If the value keeps going high those people that invested in America can't afford so they will go invest some other countries. So the value will be decreased which means Americans pressure will be a lot just like the Chinese now. A good thing is the government is not allow to make copies of money themselves only the Central Bank has the authority to do so. If the government really needs money, it can go to the international debt market to borrow money from the central bank, the Americans, and some other countries. This is a benefit to Americans and also tells other countries that America is a free country.
I did some research to help me understand this article and economy. I hope you can understand what I wrote. Also, I think Trump is raising up America's position in the world not disdain its leadership. From all the articles I read about Trump, I know that he is a man full of ambitions. One evidence can show, he is the president now. So, in my opinion, everything he's doing right now is preparing for the bigger step tomorrow.
