Tag Archives: currency manipulation

Trump for Peace and Prosperity

thIt’s been some time since I blogged.  I have had to deal with a series of health issues …

In any case, I thought I’d share a few quick thoughts about Trump’s historic win.

The day before the election, the New York Times estimated Trump’s chance of winning at 16% – but compared to most other “pundits,” I think they were being kind.  But history had a way of making history.  People voted for Trump because despite Trump!

I agree with pugster that Trump’s win is good for the U.S., good for China, and good for the world.  Here are some reasons. Continue reading Trump for Peace and Prosperity

The beginnings of a multi-currency monetary system for the world

Zhang Monan
One of my favorite columnists for China Daily is Zhang Monan. She has a crisp picture of our world’s financial system. Her recent Op-Ed, “Rebalancing global economy,” lays out for us the benefits enjoyed by the U.S. for having the USD dominating the international monetary system. Precisely because the U.S. is diluting the value of the USD at the rest of the world’s expense, China, Russia, Europe, and generally rest of the world are now pushing for a multi-currency based system through G20.
Continue reading The beginnings of a multi-currency monetary system for the world

The current global imbalance, a fight between rich and poor

Despite the moral posturing and smearing campaign against China in the Western media on the currency valuation issue, the essence of the current rebalancing of our world economic system is a fight between the rich and the poor (and between the rich themselves).

The U.S. really doesn’t have this currency valuation issue all that together. Here, NYT reports “Currency Rift With China Exposes Shifting Clout” where Jame D. Wolfensohn, a former president of the World Bank, on what this boils down to:
Continue reading The current global imbalance, a fight between rich and poor

The Politicization of the Yuan

The U.S. Congress is running scared.  With a mid-term election coming up and a populace that is unhappy about the economy, they have resorted to be mad about something, and that something appears to be China – specifically China’s valuation of the Yuan (RMB). The argument goes:

China is keeping the yuan artificially low. In keeping the Yuan low, China is stealing job from America, preventing America from undergoing a quick economic recovery. China is artificially manipulating its currency to gain an unfair trade advantage against America. America must wake up and do something. China doesn’t listen to reason. If the U.S. must go into a trade war with China, so be it.

Let’s take a look at the engine under the hood of such reasoning. Continue reading The Politicization of the Yuan

Psst … is China a currency manipulator and cause of the world financial crisis?

According to an op-ed by Paul Krugman in the NY Times today, China is not only a currency manipulator, but also a cause of the world financial crisis. I usually have some respect for Mr. Krugman, so I’ll try to take his op-ed seriously. Continue reading Psst … is China a currency manipulator and cause of the world financial crisis?