There's no problem with the Fed raising interest rates. I assume the Fed is going to be keeping most of their "balance sheet" of debt until maturity through currency swaps with the EU and Japan. And international collaboration has certainly made many things affordable and created economic growth for most.
But Gideon Rose certainly gets the "Understatement of the Year Award".
Robert Kaplan, president of the Dallas Fed, says three Fed rate hikes is still a good baseline and that the central bank’s unwinding of its balance sheet should be phased in and gradual.
Prior to that, John Lipsky, former first managing director of the IMF, says international collaboration has real substance and holds up the promise of better economic growth.
Finally, Gideon Rose, the editor of Foreign Affairs magazine, says the Trump administration is confused on Syria and trade with China. - bloomberg.com
Jared Kushner, as misinformed as most Americans, convinced his father in law China has been keeping their currency undervalued, but that all stopped in 2014 when China was offered the chance to be part of the IMF if they could stop their currency from constantly devaluing - which they did immediately and joined the IMF in October 2016.
China has been spending a lot of their foreign currency reserves since 2014 to keep their currency appreciating which makes their exports more costly. This new policy has required major economic changes in China shifting their economy to internal demand.
As with Japan, what the US needs from China is the removal of non-tariff trade barriers which prevent more US exports to China and Japan.
What we're not willing to give up is approval of Chinese company purchases of strategic US firms. When China went to purchase Union Oil and similar firms in the US they found their US Dollars were no good here, which led China's leadership to realize hoarding Dollars no longer held any long-term benefit for their economy.
The decision makers in the Trump Administration are only starting to understand our real relationship with China since Trump's meeting with President Xi, and they haven't been able to come up with any new policy yet because they so badly misunderstood reality, having relied on Fox News and other dingbat sources of misinformation. |
