Jack Lew at Treasury has apparently been given orders from the White House to do something to create "manufacturing jobs," so now he's telling China that their currency is not rising fast enough.
This policy is not only incredibly ignorant, as it reduces America's real terms of trade, but it is spiteful, vindictive and shows the Obama Administration's utter contempt for working class and poor Americans.
The reason being, it is functionally a tax that hits middle and low income people the worst as it makes the cost of Chinese made goods--which were once highly affordable--more expensive.
And the cruel lie behind this policy is that it will not create any jobs.
Obama Administration = DUMB!!!
5 comments:
American jobs have been automated and outsourced away with the workers' own stolen purchasing power.
However, bringing those jobs back or becoming Luddites is NOT the answer. Instead, large American corporations should be forced to share their profits with the entire US population.
I agree on your last statement. The policies that have allowed profits to rise to levels that have become so obscene, and unshared, is reprehensible.
You're wrong, however, on the stolen purchasing power. That is only happening now and it's because of such stupid ideas, like telling the Chinese to boost their currency and trash ours.
Mike,
Maybe Japan is next?
rsp,
Mike,
When all else fails, we can always claim there's too much melamine in their fiat. :(
Mike - How much do you think the Yuan might appreciate or depreciate if the PBOC ceased intervening in the currency market to buy USD from domestic Chinese manufacturers who export to the US?
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