Rational choice theory claims that people in the political realm act in their own self-interest. However, in today's political climate, many people act against their own interests to avoid being attacked by others.
The problem here not that the central bank is "setting" the "wrong" interest rate. The problem is the Fed has long been relentlessly forcing down interest rates to satisfy various politically determined "needs."
Even though Barbados and Jamaica had more similarities than differences when they became independent of Great Britain, Barbados developed its economy much more quickly.
As the US government debases the dollar, other nations take notice and possibilities increase that another currency based on sound principles might emerge.
The yuan won't topple the dollar as the preferred global reserve currency. But the dollar could commit "suicide" if the US doesn't change its monetary policy in a big way.
