Conclusively.
So why don't they admit it? Well, because of what I said about you before. If you were an honest debater you would admit that you were and have been wrong about U.S. Dollar Debauchment and that you need to rethink your entire trade philosophy. So would they. Guess they aren't honest.
So I ask again, do you maybe see a tipping point, h'mmmm?
My take? God save our country. We're in it deep now. You yourself are admitting, after your usual fashion, that when China revalues their currency, the rmibi/yuan, (which float they have deliberately withheld despite frantic U.S. Administration pleas), that it will have a seriously deleterious impact. They have put it off to keep their economic industrial black hole going. And they wanted to do the float when it would have had a decisive "realignment" impact on the power relationship between the two countries. I.e., a shock to be delivered only when they don't need us anymore, and could care less about the securities investments in the U.S. Well worth the price of destroying what remains of our economy, they reason. But they know doing it now will have multiple adverse effects from their perspective. They will lose the force of their black hole...slowing down FDI and outsourcing. And their sudden higher charges allow their Pacific Rim neighbors to become much more competitive.
And most deadly for the Chinese Communists: It likely would cause a U.S. recession, changing the entire U.S. political dynamic...but not destroying its economy which is in their long term objectives. The political sea-change will allow...possibly force... U.S. manufacturers to reverse the outsourcing decisions. And regain some sense of balance and perspective in their policies and political postures. For China's NEP charade to work to its intended, patiently-awaited result...we the suckers in the U.S. must not be allowed to catch wise to our vulnerability.
From their standpoint, it would be a premature tipping of the communist government's hand. And the anticipated loss of U.S. business (from both recession and policy correction... induced by the sticker shock) would also give us the wedge we need to fan the flames of unrest and discontent in China against the communist tyranny. We could finally begin to seek regime change in Bejing.
Hence, I don't think we are going to see any rmibi float soon, beyond the barest token, until they are good and ready. Which isn't this year or next....they aren't "through" with us yet.
But a Hamiltonian economic policy is yet within our purview.
Ending capital gains, and income taxes personally and corporate. Taxing consumption. And promotes savings and investment. One that favors U.S. production, and disfavors imports. Providing the funds for Federal government operations and programs.
