China, Japan, America
Senin, 20 September 2010
Last week, Japanese Finance Minister said that he and his colleagues have discussions with China for the purchase of Japanese bonds last from the wild, to "explore their plans - diplomat-speak for" Stop it now. "That makes me want to bang my head on the wall فروستراتيونYou see, a senior figure in U.S. policy has repeatedly balked at anything to do with Chinese currency manipulation, at least in part for fear that China will stop buying our bonds. But in the current climate, Chinese purchases of our tires to help us - they hurt us. Japan understands. Why can not we?
Some background: as a discussion about China's currency policy seems confusing, just because many people do not want to face reality, a simple truth - namely that China is deliberately keeping its currency artificially weak.
The consequences of this policy is strict and simple: in fact, China's import tax, terwijl export subsidies, feeding a large trade surplus. You can see the claim that China's trade surplus has nothing to do with its currency policy, if so, it will be the first in world economic history. Undervalued currency is always promoting the trade surplus, and China is no different.
And in a world economic depression, any country is an artificial trade surplus revenue lost to other countries is urgently needed and employment. Once again, anyone who claims otherwise is to claim that China is somehow exempt from the economic logic that always apply to everyone.
So what should we do? U.S. officials have tried to reason with a Chinese partner, said that stronger currencies will be China's own interests. They are the same: an undervalued currency to promote inflation, affects the real wage Chinese workers China and squanders resources. But while the manipulation of currencies was bad for China as a whole, it is good for politically influential Chinese companies - many of them belong to the state. And so the currency manipulation.
Time and again, U.S. officials had been progress on the issue of currency announced; Every time that they had. Back in June, Timothy Geithner, Treasury Secretary, praised the announcement that China would move to a more flexible exchange rate. Since then, the renminbi has risen a total one, true, 1 percent against the dollar - with a lot of improvement that occurred only in recent days, ahead of a planned session of Congress on the currency issue. And because the dollar fell against other major currencies, has made China the benefits of cost advantage actually increased.
Obviously, it will not happen until or unless the United States shows that it is willing to do what they usually do when a country provides export subsidies: while the level which compensates for help. So why the action was never on the table?
One answer, as I said, is fear of what would happen if China stopped buying U.S. bonds. But this fear is entirely wrong: the world was flooded with excess savings, we do not need money in China - primarily because the Federal Reserve will buy bonds and all sales of China.
It is true that the dollar will fall if China decides to get rid of some of corporate America. But this is really going to help the U.S. economy, make our exports more competitive. Ask the Japanese, who want China to stop buying their securities purchases because they are driving the yen.
In addition to justified fear of finances, there is a more sinister causes of U.S. passivity: fear of reprisals from the Chinese business.
Consider the related problem: China's illegal subsidies clearly provide for clean-energy industry. These subsidies have resulted in formal complaints by U.S. companies, in fact, the only organization willing to complain is the steelworkers union. Why? As The Times, "Multinational enterprises and trade organizations in the clean energy industry, as in many other industries, deliver the goods on guard against trafficking cases, Chinese officials fear reprisals against reputation of a joint venture in their countries, and potentially deny access to any company which markets take sides against the Chinese. "
Similar abuse has clearly helped prevent the action in front of the eye. So this is a good time to remember that what's good for multinational corporations are often not good for America, especially the workers.
So here's the question: will the U.S. financial policy makers allow themselves to be haunted by the specter of intimidation and torture by the industry? Do they keep doing nothing in the face of policies that the Chinese special interests at the expense of both Chinese and American workers? Or will they finally, finally act? Stay tuned
