To: FReepers; everyone; All
Posted on 11/14/2011 12:26:00 PM PST by Driftwood1
President Barack Obama continued his efforts to make China stronger and America weaker during last weekend’s Asia-Pacific Economic Cooperation (APEC) summit in Hawaii. How? By pressuring Chinese President Hu Jintao to increase the value of the yuan relative to the dollar. If successful, this policy will make Americans poorer relative to the Chinese.
The theory behind the Obama Administration’s weak dollar policy is seductive, but wrong. A rise in the value of the yuan relative to the dollar is supposed to make Chinese imports more expensive, and U.S. exports to China less expensive, thereby reducing Chinese imports and increasing U.S. exports. The problem is this theory has failed miserably ever since President Nixon broke the dollar’s link to gold and devalued the dollar in 1971. Since then, the dollar has fallen by more than 70% against the euro/German mark and the Japanese yen. And the net trade account has gone from near balance in 1971 to massive deficits today.
The results with China are the same. Since 2004, the dollar has fallen by nearly 25% against the yuan. By last year, U.S. exports to China had increased $57 billion, but imports had gone up by $168 billion, leading to a $111 billion increase in the bilateral trade deficit.
The danger of a weak dollar policy is in the total incoherence between its objective – to make Americans more prosperous – and its prescription – to make Americans poorer by increasing the price of our imports while reducing the value of what we sell in exchange.
(Excerpt) Read more at forbes.com ...
If socialism is the road to serfdom, then currency devaluation is the superhighway to poverty.
Where’s the GOP on this? Where are the Patriots?
crickets chirping.....
IMPEACH THE SOCIALIST NOW!
by design
Socialist?
Obama is America’s first Muslim President. A Muslim serving as POTUS would want to hurt America which no one can deny he is doing in every way imaginable.
What better way to destroy America than to play a radical leftist when actually he is better described as a Muslim terrorist?
I’m having a Clinton flashback.
I don’t think he’s so much a “Muslim” as he is just anti-Christian.
He’s definitely a humanist Marxist who has no regard for individual freedom.
devaluing your currency don’t mean a booming export/manufacturing market. If it does, Zimbabwe would be the Mecca of Exports. Devaluing currency simply make your citizen poorer
Socialist?
Obama is America’s first Muslim President. A Muslim serving as POTUS would want to hurt America which no one can deny he is doing in every way imaginable.
What better way to destroy America than to play a radical leftist when actually he is better described as a Muslim terrorist?
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