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To: DannyTN

Well, I don’t see how labeling China as a manipulator is going to solve anything. We need to raise interest rates to create incentives for capital creation and production. A more liquid labor market would also be beneficial.


23 posted on 11/13/2012 3:13:34 PM PST by Cheap_Hessian (I am the Grim FReeper.)
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To: Cheap_Hessian
"Well, I don’t see how labeling China as a manipulator is going to solve anything. We need to raise interest rates to create incentives for capital creation and production. A more liquid labor market would also be beneficial."

We don't need to raise interest rates with 25% unemployment. The incentive for capital creation isn't coming from an increased interest rate, it's coming from an increase market opportunity. And with the unwise trade rules we've implemented, the market opportunity is overseas not here.

But I agree, labeling China as a manipulator is not really the solution. It allows us to impose a tariff, which is a start, but it misses the real issue. The real issue is that we don't need to be pursuing free trade with low wage countries unless we are at full employment.

26 posted on 11/13/2012 3:17:53 PM PST by DannyTN
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