Senate Minority Leader Chuck Schumer dared President Trump to make good on his promise to label China a currency manipulator on day 1. China's actually been manipulating currency in a helpful way to the United States, recently.
One of Trump's options, to redress America's horrendous $500-billion-a-year trade deficit, is to impose a tariff. That is
It's a tricky ride, and one fraught with political and economic conflict. But it's a necessary one in order for President Trump to keep his promises, rebuild a preeminent U.S. economy, and create good jobs and a higher standard of living for all Americans.
We have Trump offering quite specific policies, and taking extreme heat for them. Hillary Clinton's strategy is, apparently, not to be pinned down. In other words, she has adopted a political strategy, not a substantive one.
It's unclear whether that matters to voters who lost their jobs to Chinese exporters, though.
China makes way, way too much steel. In 2015, it produced nearly 500 million tons more than it needed. Production of that steel was subsidized by the Chinese government in ways that violate international trade rules, so the price was artificially low. And China suppresses the value of its currency, further falsely reducing the cost of the steel.
The Economic Policy Institute found that currency manipulation is the most important cause of America's massive trade deficits with TPP countries. Trade deficits mean products are shipped to the United States rather than made in the United States. The math is simple.
As Donald Trump continues his Shermanesque march through the Republican primaries, the Wall Street Journal continues to fire relentless volleys of cheap shots, pot shots, and the paper's much hoped for gut shot. Just consider last week's run-up to what would be Trump's resounding South Carolina victory.
It's not just that American consumers are helping to finance the construction of China's war machine. There is also the creeping loss of control over core strategic elements like the US food chain.
The global economy is suffering from a chronic structural disequilibrium driven by widespread currency misalignments.
Division and diversion help the one percent capture government, securing policies that further enrich the rich, like trickle-down economics under which no benefits ever actually descend, bailouts for Wall Street but not Main Street and job-destroying trade deals like NAFTA and the proposed Trans-Pacific Partnership.
This morning, the White House announced the clinching of a TPP trade deal. Unfortunately, the agreement negotiated by President Obama is completely inadequate to serve the interests of America's manufacturers, industrial workers, farmers, and other segments of the U.S. economy.
I'm happy to be celebrating manufacturing and Made in America. Heck, I do it every day. But I must admit: I get a bit aggravated by politicians who readily treat factory workers and their hardhats as political props but fail to deliver on public policies.
Currency manipulation has become our trade competitors' favorite maneuver for skirting massive trade deals as soon as they sign them, and it's about to happen again. The result of currency manipulation, as it occurs after trade agreements, is that it's nearly impossible for the U.S. to get a fair shake in these deals.