International Trade Blog

The economic crisis has hit more or less everybody in the world and while some might secretly be very happy that, for example, USA is hit hard and struggling, we sometimes forget that on some levels we are all connected. That is why they call it global economic crisis.

We must admit that the US dollar is the most widespread currency. Many national currencies are aligned to the dollar and very much react to the changes of the dollar’s value. Many governments have obtained huge securities from USA and the low value of the dollar decreases its own value. The same connectivity applies to the economy. Basically as long as USA economy is struggling so will many other country economies. Because, lets face it, USA is currently the most powerful country in the world. Countries like China, Japan, Mexico and many others are quite dependent from trade with USA. Although the relationship between China and USA is not the best one, China has understood that the unstable US economy and the low value of dollar is affecting them all as their own exporters are struggling just because of this fact. So China has requested talks with USA president Obama about the economic situation and possible solution. A commendable fact in deed! No matter the previous relationships we must see farther our own yard and apparently some countries have began to do just that..

The global crisis can be beaten, but it can be only beaten by combined global efforts. There is no off switch for the crisis and it will not magically stop at a certain date. At least temporary we should forget all the bad blood between us all and try to pull the cart out of the dirt all together. When the situation is resolved we can return to previous state of mind. We must remember who actually suffers the most during this crisis. It is not the countries or the large corporations; it is the people, me included. So let’s stop screwing around and do something about it.