Comments on: One of These Currencies Is Not Like the Other

By: Fred List

Fred List — Fri, 15 Jul 2011 18:45:49 +0000

Great! Bernstein joins the hit parade of US economists who are willing to point out that Chinese policies (& those the E.Asian states that follow Chinese practice) have decimated the US economy.

The US needs both protectionism AND stimulus.

By: Mary

Mary — Fri, 15 Jul 2011 05:29:43 +0000

Interesting observation. Thank you. Speaking of the RMB, I wonder what the Chinese think of all this tomfoolery. I can’t imagine that they are too pleased. And if they are not happy, neither should any corporation wanting their business. Point being: Obama needs to broaden his base of support. Nobody (aside from dingbats like Pawlenty, Ron Paul and Bachmann) wants default — not the financial sector, not corporate America, not the soldiers, not senior citizens…nobody. So why are the Dems compromising again?

By: Kevin Rica

Kevin Rica — Thu, 14 Jul 2011 00:20:13 +0000

Jared,

“I don’t think this is the whole or even the half of the story.”

China may not be the whole story, but only because Korea, Taiwan, Hong Kong, Singapore are doing the same thing. Taken together, the largely explain our loss of control over aggregate demand. The rest of the problem involves the damage done by the mortgage bubble which was blown up by the influx of Asian reserve purchases. (And before that, they blew up the dot come bubble).

Remember, the whole stimulus package was less than $800 and that involved an increase in debt. Closing the current account deficit would provide about $500 billion in annual– ANNUAL –stimulus without any increase in US debt.

American cannot protect its citizens if it is simply the place where surplus Chinese capital employs surplus Mexican labor.