Richmans' Ideal Taxes Association Blog

Morici Proposes a Scaled Tariff Variant to Confront China

09 Sep 2010 13:18:32 EST

Jesse Richman, 9/9/2010

In a posting on the CNBC website, University of Maryland economist Peter Morici argued forcefully that inattention to the trade deficit is costing the Democrats this election.

"Without the second quarter jump in imports—led by consumer goods from China and boosted by an undervalued yuan and export subsidies President Obama neglects—GDP growth would be close to 5 percent, hundreds of thousands of Americans would be finding jobs, and Democrats...

Summers was given the royal treatment in China

08 Sep 2010 08:27:59 EST

Howard Richman, 9/8/2010

Summers was not shunted to lower-level aids who were unable to make decisions, but met with Chinese President Hu Jintao and with Bernanke's counterpart Zhou Xiaochuan, the head of the People's Bank of China. The Chinese went out of their way to achieve an atmosphere of friendliness. Here's a selection from the Reauters' report of the meeting:...

Summers heads to China to rescue U.S. recovery

07 Sep 2010 08:56:28 EST

Howard Richman, 9/7/2010

When Lawrence Summers read the latest unemployment and GDP reports, he probably arrived at the same conclusion that my father, son and I did (Obama Did Create 3 million Jobs -- In China) -- that the rising trade deficit was killing the U.S. economic recovery. So on Saturday, he left for China to persuade the Chinese government to loosen its currency manipulations and other trade manipulations which maximize Chinese exports to the United States while minimizing Chinese imports from the United States.

In anticipation of his meeting, the Chinese government is erecting a brick wall. They are claiming that they don't keep their people from buying U.S. products. They are claiming that if only we sold them the high tech gear that their military needs, trade would move toward balance. They are claiming that their manipulation of the yuan-dollar exchange rate is an internal Chinese issue. They don't plan to give in one iota. Here is a selection from the Associated Press report:...