That idiot Krugman is blathering on now that it is the U.S. that has China over a barrel, not the other way around. Let's see - we owe them a bunch of money, they have a labor force 4X ours that will work for subsistence wages, they don't pi$$ away 15% of GDP on dysfunctional healthcare, and - oh, that's right - they have all the globe's factories and are stockpiling raw materials on their soil. And we've got them over a barrel? You must smoke some really good $hit at those top-notch universities...
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finance.yahoo.com,^gspc,^dji&sec=topStories&pos=9&asset=&ccode=
Krugman: It's America That Has China Over A Barrel, Let's Take Advantage Of it
Posted Mar 15, 2010 08:33am EDT by Joe Weisenthal in Investing, Banking, China
Related: fxi, tlt, tbt, uup, udn, ^gspc, ^dji
Provided by The Business Insider, March 15, 2010:
By the end of April Tim Geithner's Treasury has to publish a semi-annual report that will either brand China as a currency manipulator or not.
Of course, everyone knows that China -- like all countries -- manipulates its currency, but these things are shrouded in theater and politics and nuanced language, but the upshot is that it would apparently be a big deal if the Treasury actually made such a call.
Well, leading figures in the US are going to put as much pressure on Geithner to do so as they can.
In a fresh editorial out today, Krugman says it's time the US began "taking on China." That's actually the headline of the column.
What's most interesting about the column isn't his call for China to let the Yuan rise in value, that's old, but his argument that the US has nothing to fear from China.
It's true that if China dumped its U.S. assets the value of the dollar would fall against other major currencies, such as the euro. But that would be a good thing for the United States, since it would make our goods more competitive and reduce our trade deficit. On the other hand, it would be a bad thing for China, which would suffer large losses on its dollar holdings.In short, right now America has China over a barrel, not the other way around.
Bold and refreshing!
Meanwhile, while Krugman fights the intellectual battle in the media, NY Senator Chuck Schumer is prepared to go to take action in Congress. Word is that Schumer is set to introduce legislation that would go after China over manipulation, and it may resemble a bill he proposed in 2005 to slap huge tariffs on imports. That didn't pass, but it sent a message.
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