An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Friday, January 23, 2009
Geithner Warning on Yuan May Renew U.S.-China Tension
"Timothy Geithner’s warning that President Barack Obama believes China is “manipulating” its currency..."
Here we go again!
This is terrible policy and a continuation of what the last administration was doing. No change whatsoever.
The U.S. believes that the solution to our "problem" lies in making America an export-driven economy like China, however, only way to accomplish this--to gain comparative advantage--is to bash our currency down relative to China's currency. Ultimately this results in a lower standard of living for Americans vis-a-vis the Chinese. It's gold standard thinking, but we are not on a gold standard anymore. Someone in Washington ought to wake up and recognize that.
Read article here.
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2 comments:
The Dan Frishberg/MoneyMan Reoport Show from Friday which Mike hosted was not availbale on Apple Saturday. But it is available now on itunes - Sunday Morning.
Billy
Thanks!
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