In today's Wall Street Journal, William Maudlin and Bob Davis have a story on Treasury concerns about the motivation for Chinese currency dropping in value.
http://online.wsj.com/news/article_email/SB10001424052702304819004579487900847199382-lMyQjAxMTA0MDAwODEwNDgyWj
What is curious about it is the Treasury telling China we are watching what they are doing to manipulate their currency value, when this managed economy does it all the time. It is just going down in value this time. When it goes up, we don't mind a little manipulation. When it goes down it puts Chinese goods in a better position to compete with ours.
We put ourselves in a very poor position by selling our national debt to the Chinese. Russia owns $100M of our debt too. If we could get a balanced budget, or get more countries to buy our debt, we would be a in much better position to tell them we are watching what they are doing. They must take this with a grain of salt most of the time. When a person owes me money, I don't expect he will comment on how bad my front lawn looks. I guess Treasury doesn't see it that way. Amazon books:
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