Tuesday, October 11, 2011

CHINA'S CURRENCY -- DECEPTION, STUPIDITY AND MORE

The issue of China's currency valuation is one that elicits bipartisan irrational response, but more from the left than the right. Yet, the left, uses the issue deceptively to influence the very people they are trying to maintain in their voter bloc. It is a populist issue and few people give thought to, or understand, the real impact of "forcing" China to up value their currency. Bob Corker captures the real essence in the link above, although he probably understates the increase in costs of all goods we buy from China. It is more like 40%. To be sure, currency valuation is an issue, but now is absolutely not the time to deal with it in a knee-jerk haphazard way. Yes, stupid!
A trade war is always a bad idea, but in these economically perilous times it would be catastrophic as it was in 1930 with Hawley-Smoot, forgotten by many with more being totally oblivious that it ever existed. Donald Trump must be one of those who doesn't know of H-S.. 
If we manufactured the goods people buy at reasonable costs, this would not be an issue.
Democrats, and some Republicans, will not admit to the true reason for the loss of manufacturing in America (now <10% of GDP). High costs of unions is a major cause. Those of us who have been in the manufacturing arena know the truth. We have often spoken of unions "eating their young" -- destroying the jobs that would have been there for their progeny. Detroit 3 auto manufacturers provide a perfect example. 
The NLRB's efforts to prevent Boeing from manufacturing in South Carolina is a similarly destructive action today. It is Mr. Craig, President Obama's recess appointment to the NLRB doing his benefactor's bidding while destroying opportunities for employment and raising costs.....not to mention abrogating labor law and more. China will be the benefactor! So much for Obama's goal to increase exports by 50%.
At the same time, Obama campaigns with disingenuous pandering to the same people whose jobs he is willing to destroy. Get the picture? Go figure! Where are his opponents in explaining this to people? They're battling about whether a Mormon can be president at the moment. Not smart!



 
 

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