Tuesday, October 11, 2011

The Usual Lies About PRChina Trade

Ticker makes some observations which should deflate the "Smoot-Hawley" liars--but, of course, the liars just keep on asserting their claims.

Here are a few facts:

...we import $4 worth of goods from China for every $1 we export.  China insures this through tampering with the exchange rate of the Yuan, effective slave and actual child labor, environmental arbitrage, protectionism and forced local production of "imported" products (illegal under any reasonable interpretation of "free trade" incidentally) and intellectual property theft.  Every time we pass one of these "free trade" bills we get the same result - a larger trade deficit.  The only thing "free" is that the other nations are free to rob us.  [He doesn't mention that PRChina doesn't have a national social-welfare system, either....which they don't.]

That's why I call for "FAIR" trade--which is not the same as "free" trade.  Note the above carefully....

Trade deficits are self-correcting unless the monetary authority "replaces" the capital otherwise drained with more credit.   That is, what we have allowed to happen could not have "worked" for the time it did without outrageous and blatant monetary manipulation by The Federal Reserve.

As Ticker notes, that "replacement" has also allowed Congress to blow up the country's spending (and deficits) to unimagined levels.

Oh, well.

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