PING!
Somebody explain how the USA is NOT in a trade war now? How can you fear something that is already happening? Such Bull sh!+.
Fork tongued Free Traitor™ talk.
This is why Trump needs to ignore this bull crap completely. This is a joke right? Trump needs to start fighting a trade war now!
Some many lies and half truths I do not know where to start.
No, it’s not just currency manipulation. It’s alsocwage differentials and the amount of unemployed labor.
China still has a couple of hundred million people who would love ot come in from the fields and work a factory job for $2/day.
And I’m not opposed to taking advantage of that labor, but not when it’s putting American’s out of work. China could literally take almost every American job without manipulating it’s currency.
We were idiots to lower the import tariffs that served this country well for 180 years. It’s time to restore them.
Hmm a fellow advocating the gold standard whose name means:
Gilder Name MeaningEnglish: variant of Gold 1. Source: Dictionary of American Family Names ©2013,Oxford University Press
Coincidence? I think not.
Well, regardless of what China does, we’ve been manipulating our own currency as well for many years. The lunatic policies of the Greenspan era only got worse under Obama, but they are hiding the manipulation by not putting all the money they print into circulation (yet), as Bernanke explained in a 2012 presentation:
“Now, you might ask the question, well, the Fed is going out and buying 2 trillion dollars of securities – how did we pay for that? And the answer is that we paid for those securities by crediting the bank accounts of the people who sold them to us, and those accounts, at the banks, showed up as reserves that the banks would hold with the Fed. So the Fed is a bank for the banks. Banks can hold deposit accounts with the Fed, essentially, and those are called reserve accounts. And so as the purchases of securities occurred, the way we paid for them was basically by increasing the amount of reserves that banks had in their accounts with the Fed.
So you can see this, here, this is the liabilities side of the Fed’s balance sheet. Of course, assets and liabilities (including capital) have to be equal. So the liabilities side had also to rise near 3 trillion dollars, as you can see.
Now, take a look first, as you look at this, take a look first at the light blue line at the bottom. The light blue line at the bottom is currency – Federal Reserve notes in circulation. Sometimes you hear that the Fed is printing money in order to pay for the securities we acquire. And I’ve talked about that in some, you know, in giving some conceptual examples. But as a literal fact, the Fed is not printing money to acquire these securities, and you can see it from the balance sheet here, the light blue line is basically flat. The amount of currency in circulation has not been affected by these activities.
What has been affected is the purple area. Those are reserve balances. Those are that accounts that banks, commercial banks, hold with the Fed, and they are assets of the banking system and they are liabilities of the Fed, and that’s basically how we paid for those securities. And so, the banking system has a large quantity of these reserves, but they are electronic entries at the Fed. They basically just sit there. They’re not in circulation. They’re not part of any broad measure of the money supply. They’re part of what’s called the monetary base, but again, they’re not, they certainly aren’t cash.”
https://www.federalreserve.gov/mediacenter/files/chairman-bernanke-lecture4-20120329.pdf
See the magic trick there? They made an entry on their balance sheets to increase the “monetary base” without it being counted in “any broad measure of the money supply”. The markets are artificially inflated by this manipulation, but it doesn’t increase inflation because the money they printed to prop up the markets is hidden. Those reserves are not imaginary though, they will eventually, through the magic of the Federal Reserve System, become money in circulation, with all of the usual consequences of increasing the money supply. Of course Bernanke is gone now, so he won’t be holding the bag when that happens!
Funny - he was the only one talking about currency manipulation and they all pooh-=poohed his ideas. Now, they take what they all ignored as part of the Golden Goose and then try to trash the rest of his plans even though they haven’t a clue as to what the plans actually entail - he’s so far above them that I wouldn’t let my kid start his first $10 bank account with any of them.