If we're so beggard why are we sitting on $18 trillion GDP? Yeah, that's after (X-M). We grossed $2.3 trillion in imports last year, $466 billion from China. Less than 3% of GDP.
Chinese currency manipulation is a canard. It makes no sense to manipulate currency to affect the balance of trade, you manipulate your currency to stimulate or retard economic growth, and control inflation.
http://www.project-syndicate.org/commentary/chinese-currency-manipulation-by-jeffrey-frankel-2015-02
I don't know if you noticed, but we engaged in some pretty heavy duty "currency manipulation" ourselves since 2008-2009 setting our interest rates at zero and three rounds of quantitative easing.
Face what you want shithead. The problem in this country is not the amount of economic activity or wealth, it's the way it's distributed.
Don't even fucking talk about the higher education situation in this country after all the federal and state cuts to education budgets.
First you say we aren't beggared, then you go to point out that the distribution is wrong (which I agree) but it is wrong because we have beggared specific classes to the benefit of others.
The byproduct of generating economic growth is balance of trade when the person you are trading against has an appreciated currency relative to yours and you do not let yours naturally float. This is the same problem Germany has with the rest of the Euro. A German DM should have a much higher rate than a Greek Drachma, because the current account deficits. However, since they have one currency, and Target2 doesn't result in currency adjustments, you get accumulation of reserves, through Target2, that doesn't result in relative appreciation, resulting in cheaper German goods being sent to a debtor nation without any adjustment for currency.
The problem with Frankel's analysis is that it relies almost solely upon the notion that a point in time (2014) matters. It doesn't. Especially when that point of time has other factors *and* the peg is in place within a narrow band. That narrow band has obviously resulted in lower growth, so what did China do? Depreciated to stimulate growth. Since they are export dependent that growth comes on the backs of the US, mainly because their goods become cheaper, while our goods exported to China become more expensive. Thus they accumulate more reserves.
Furthermore, he ignores that the automatic balancing of FCR, excluding temporal actions, would now lock China into a deflationary spiral that they couldn't get out of. They have fucked the entire globe, and themselves, and the US. They have allowed too much to accumulate, too quickly, and now it is at the peril of everybody. If they are lucky they'll get a Japan style malaise, but that's only after they'll try to depreciate the shit out of their currency, again, to generate economic gains through US consumers (and workers).
But our currency manipulation is wholly different. 1) Chinas (mostly) USD peg results in almost no differential for our system. Notice other countries that have become larger exporters to the US? Vietnam, pretty much pegged, among others. And 2) US is far less export driven. Please show where the US is a net energy exporter. Shale longevity is still unproven given the rapid decline of the wells.
You're a Johnny Come Lately to the student loan problem. I've been talking about state budgets for a very long time. If I didn't think you'd dox me I'd show you some actual work I've done on it, professionally. Here is one from 2014
http://forums.anandtech.com/showpost.php?p=36578397&postcount=204
I also started discussing tuition costs in 2009.
You, sir, are a piece of work.
Facebook
Twitter