Ideal Taxes Association

Raymond Richman       -       Jesse Richman       -       Howard Richman

 Richmans' Trade and Taxes Blog



Bernanke to China: Stop Hurting Us or You'll Hurt Us -- We're published in today's American Thinker
Howard Richman, 12/10/2010

To read it, go to:

http://www.americanthinker.com/2010/12/bernanke_to_china_stop_hurting.html

Here's how we begin:

Even though the Chinese economy is growing at a 10% pace while the United States economy is growing at a 2% pace, Federal Reserve Chairman Ben Bernanke could not resist telling the Chinese government how to run its economy. His remarks appeared in his November 17 2010 speech in Frankfurt Germany. He lectured China:

(C)ountries that maintain undervalued currencies may themselves face important costs at the national level, including a reduced ability to use independent monetary policies to stabilize their economies and the risks associated with excessive or volatile capital inflows.... Perhaps most important, the ultimate purpose of economic growth is to deliver higher living standards at home; thus, eventually, the benefits of shifting productive resources to satisfying domestic needs must outweigh the development benefits of continued reliance on export-led growth.

The trouble is that it is the United States which is having difficulty in stabilizing its economy, not China, and the "ultimate purpose of economic growth" may not be higher living standards at home." Nations have other goals like dominating their neighbors, as Japan, the USSR and the Nazis had before WWII. Even the U.S. had dominating the Americas as an obective during the late nineteenth and twentieth centuries.

China is running huge trade surpluses (about 5% of GDP) because it is concentrating on growing its national power. And it has the help of hundreds if not thousands of multinational corporations. Her trade surplus is largely made up of the products produced by multinationals in China, including high tech products like computers, televisions, cell phones, and automobile parts. The list of companies looks likes the Who's Who of the industrial world! And make no mistake, their factories -- really co-factories -- are Chinese. The Chinese have learned from Stalin's mistakes and understand, as Lenin did, that the capitalists in their greed will provide the rope to hang them with! Recently, Andrew Grove, a founder of Intel, warned his fellow high-tech companies, like Apple, HP, Dell, and many others, that their outsourcing in China foretold a coming disaster for the U.S., noting that most had ten times as many employees producing their products in China as they did in the United States.

Although Bernanke thinks that China is sacrificing higher living standards through its present policies, he is incorrect. While hundreds of millions in the provinces have not participated in its economic growth, millions of Chinese workers have reaped substantial benefits. China has a significant middle class. It is the United States that is seeing its living standards decline and its distribution of income worsen as a result of the loss of factory jobs, all because Bernanke and America's other economic leaders don't understand the negative effects of our chronic and escalating trade deficits

Your Name:

Post a Comment:




  • Richmans' Blog    RSS
  • Our New Book - Balanced Trade
  • Buy Trading Away Our Future
  • Read Trading Away Our Future
  • Richmans' Commentaries
  • ITA Working Papers
  • ITA on Facebook
  • Contact Us

    Archive
    Apr 2017
    Mar 2017
    Feb 2017
    Jan 2017
    Dec 2016
    Nov 2016
    Oct 2016
    Sep 2016
    Aug 2016
    Jul 2016
    Jun 2016
    May 2016
    Apr 2016
    Mar 2016
    Feb 2016
    Jan 2016
    Dec 2015
    Nov 2015
    Oct 2015
    Sep 2015
    Aug 2015
    Jul 2015
    Jun 2015
    May 2015
    Apr 2015
    Mar 2015
    Feb 2015
    Jan 2015
    Dec 2014
    Nov 2014
    Oct 2014
    Sep 2014
    Aug 2014
    Jul 2014
    Jun 2014
    May 2014
    Apr 2014
    Mar 2014
    Feb 2014
    Jan 2014
    Dec 2013
    Nov 2013
    Oct 2013
    Sep 2013
    Aug 2013
    Jul 2013
    Jun 2013
    May 2013
    Apr 2013
    Mar 2013
    Feb 2013
    Jan 2013
    Dec 2012
    Nov 2012
    Oct 2012
    Sep 2012
    Aug 2012
    Jul 2012
    Jun 2012
    May 2012
    Apr 2012
    Mar 2012
    Feb 2012
    Jan 2012
    Dec 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010

    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010

    Categories:
    Book Reviews
    Capital Gains Taxation
    Corporate Income Tax
    Consumption Taxes
    Economy - Long Term
    Economy - Short Term
    Environmental Regulation
    Real Estate Taxation
    Trade

    Miscellaneous

    Outside Links:

  • American Economic Alert
  • American Jobs Alliance
  • Angry Bear Blog
  • Economy in Crisis
  • Econbrowser
  • Emmanuel Goldstein's Blog
  • Levy Economics Institute
  • McKeever Institute
  • Michael Pettis Blog
  • Naked Capitalism
  • Natural Born Conservative
  • Science & Public Policy Inst.
  • TradeReform.org
  • Votersway Blog
  • Watt's Up With That


    Wikipedia:

  • [An] extensive argument for balanced trade, and a program to achieve balanced trade is presented in Trading Away Our Future, by Raymond Richman, Howard Richman and Jesse Richman. “A minimum standard for ensuring that trade does benefit all is that trade should be relatively in balance.” [Balanced Trade entry]

    Journal of Economic Literature:

  • [Trading Away Our Future] Examines the costs and benefits of U.S. trade and tax policies. Discusses why trade deficits matter; root of the trade deficit; the “ostrich” and “eagles” attitudes; how to balance trade; taxation of capital gains; the real estate tax; the corporate income tax; solving the low savings problem; how to protect one’s assets; and a program for a strong America....

    Atlantic Economic Journal:

  • In Trading Away Our Future   Richman ... advocates the immediate adoption of a set of public policy proposal designed to reduce the trade deficit and increase domestic savings.... the set of public policy proposals is a wake-up call... [February 17, 2009 review by T.H. Cate]