Skip to comments.The more America huffs about the yuan, the less China will do about it
Posted on 03/14/2010 5:30:50 AM PDT by TigerLikesRooster
The more America huffs about the yuan, the less China will do about it
It's always easier to blame someone else for your failings.
By Liam Halligan
Published: 6:19PM GMT 13 Mar 2010
Comments 22 | Comment on this article
A test of true character, perhaps, is the extent to which one is prepared to blame oneself. As such, the Western world's response to this self-made "credit-crunch" has highlighted the hypocrisy of our so-called leaders, their refusal to face reality and, above all, their lack of character.
When sub-prime first hit, Hank Paulson, then US Treasury Secretary, said "this financial crisis was caused to a large extent by a failure to address the rise of the emerging markets and the resulting global imbalances". Last autumn, European Central Bank boss, Jean-Claude Trichet, argued that "imbalances have been the root of present difficulties".
Even Barack "Change We Can Believe In" Obama has stooped to play the blame game. "We cannot follow the same policies," the President said on a recent trip to Asia, "that have led to global imbalances."
The implication is that sub-prime, and the deepest Western recession in generations, wasn't our fault. It was entirely unrelated to widespread financial fraud, political myopia and lax regulation. Central banks kept interest rates too low for too long, Western consumers went on a debt-binge and our governments spent like crazy but all that was nothing to do with us.
It was their fault - China and all those other upstart emerging markets. They produced things the rest of the world wanted, ran big trade surpluses and accumulated reserves. As a result, the Western world was "flooded" with Eastern savings, "forcing us" to keep on borrowing and spending.
(Excerpt) Read more at telegraph.co.uk ...
You get what you pay for. I find it strange that conservatives get all upset about what the current administration does on the one hand, while almost eagerly subsidizing it economically on the other.
Why complain? Were getting what were paying for.
This would actually be a good article if it was not so protectionist over Communist China.
The only way you fix the imbalances with Communist China is to slap a tariff on all Communist Chinese goods coming into the US. Liberal Globalists who push Marxist income taxes over sales taxes will not like it....but the tariff would start correcting imbalances right away...and is the best counter against Communist China toying with the yuan
Now we are owned by the same people he gave the Panama Canal to!
China has got to be thinking that if we are so insistent on them fiddling with their yuan, it’s good for the U.S. and bad for China. It wouldn’t be a matter of them deciding simply out of pride or spite not to do what we want them to.
I agree, if China wants to continually manipulate their currency- this is the way to go...but it isn’t likely to happen.
The Chinese has to fiddle with their currency. Remember that their cutting edge technology is still 7-10 years behind us. By intentionally devaluing the Yuan, our companies would have a strong incentive in outsourcing key manufacturing technologies to China.
Once the technology gap between China and the U.S narrows to 3-5 years, I would expect them to let the Yuan appreciate to it’s full value.
But of course, if the Yuan reflected it’s actual value, the Chinese annual GDP would be 10 Trillion dollars today instead of only 5 Trillion.