Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: OwenKellogg
"Southack, subsidies and tariffs to manage trade are not conservative values. You are espousing liberal policies!"

No, no, and no.

Devaluing your currency is a *stealth* subsidy. It makes your exports cheaper even though there are no direct payment subsidies. This is nationalistic, not liberal.

Likewise, devaluing your currency makes your imports from competitor nations more expensive, yet there is no actual, direct tariff involved. Again, this is Nationalistic.

Nor do you have much of a choice in a global economy. You can play the ostrich and pretend that because there are no overt, direct subsidies or tariffs that you are somehow espousing free market Capitalism, but the hard, cold, cruel reality is that your global competitors are going to seize upon such naivity by using their own resources and tricks to manipulate *your* currency to your entire nation's detriment. This is precisely what China is doing by hoarding $500 Billion in U.S. Dollars. It props the Dollar up higher than its natural free market value would ordinarily reside.

The other choice is to play the same game by attacking competitors' currencies via devaluing your own.

279 posted on 11/27/2004 10:20:29 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
[ Post Reply | Private Reply | To 278 | View Replies ]


To: Southack
Series question:
If or when China "let's go" so to speak, like the tulip craze in Holland, who gets hurt the worst? US or PRC
281 posted on 11/27/2004 10:25:41 PM PST by investigateworld (( Willie Green for President!!! ...Now on my 5th day of not bashing Wal-mart))
[ Post Reply | Private Reply | To 279 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson