It’s not just Americans worried about the flood of dollars from the Fed. The Chinese and now the Malaysians also are wondering if they should keep dealing in greenbacks.
Malaysia’s prime minister said China and his country are considering conducting their trade in Chinese yuan and Malaysian ringgit, joining a growing number of nations thinking of phasing out the dollar.
“We can consider whether we can use local currencies to facilitate trade financing between our two countries,” Malaysian Prime Minister Najib Abdul Razak told reporters at a briefing Wednesday after meeting with China’s premier, Wen Jiabao.
“What worries us is that the [U.S.] deficit is being financed by printing more money,” Mr. Najib said. “That is what is happening. The Treasury in the United States is printing more notes.”
The dollar won’t easily be displaced as the world’s principal reserve currency. But Washington appears to be doing everything possible to hasten that day.
Perhaps Americans should consider keeping their wealth in yuan or even ringgits. At least they might retain their value even as the Fed and Treasury attempt to inflate and spend the U.S. economy into oblivion.