August 3, 2008
-- by Dave Johnson
In my morning paper: Chinese making a great leap forward,
It's one of the epic stories of modern times - China's great leap in a single generation from an impoverished and backward nation to a world-class economic power.How did China achieve this? Classic protectionism. They restrict imports to protect jobs in China and bring in more. They manipulate their currency to keep it low. Etc. Etc.
The United States and other trading partners have a long list of complaints about China's economic policies. Chief among them is the accusation that China keeps its currency, the yuan, artificially low to keep out imports and make its exports cheap in foreign markets.Meanwhile we have a massive trade deficit with China, and since 2001 we have lost 2.3 million jobs. Thar's what they call "free" trade. We give our jobs away for free.
Posted by Dave Johnson at August 3, 2008 10:58 AM
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Good points. Now I am wondering if 'democracy' is worth it. The Unthinkable. No more elections and just work, work, and let the Parti have it's 5 year plans?
Posted by: datadave at August 3, 2008 12:46 PM
Ha. I suspect the currency manipulation by China is about the change. The Olympics will be over, then we'll see if they continue to weaken the yuan to protect their jobs. I suspect they won't.
This will cause us to enter a new phase in our financial crisis, much more severe that what we've seen so far.
I could be wrong, I'm making a bold prediction.
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