When the Soviet Union fell, the world rejoiced and the Cold War ended. Some predicted an “end of history” and smooth sailing from there on out. Reality has been very different, because just as the Cold War was ending, an economic war with China was beginning. In truth, it has not been much of a war; more like a one-sided slaughter. The reason for this is the United States will not wake up, does not even want to acknowledge the war has long since begun and it is losing.
Tag Archives: Currency Manipulation
When we look at the causes of the colonists’ discontent, we see that some themes are prevalent through the centuries. The King of England used tariffs and manipulated trade to benefit England at the expense of the colonies. In school we learn about the rebellion against the tax on tea, but in reality this was but one small issue in a large list. The real problem was that England was protecting its home markets at the expense of colonial ones.
Democrats and Republicans are constantly swept up in debate regarding labels. Republicans generally argue for free trade while a few progressive democrats campaign for fair trade. In reality, all that American citizens are doing is getting caught up in a false-ideological battle whilst ignoring actual issues. “Free trade” and “protectionist” fair trade are just labels: Americans should simply be focused on “trade” and what is best for our country. Is this not the policy every country should adopt?
The World Trade Organization (WTO) has convened a meeting in Geneva, Switzerland to discuss the ramifications of currency policy on trading relationships. WTO Director-General Pascal Lamy has asked countries to examine the subject in a rational way, and to avoid finger-pointing. However, when examining the situation, the only rational response is finger-pointing: some countries purposefully devalue their currency in violation of WTO rules, and others do not. Devaluation by countries such as China has hurt the U.S. economy immensely over the years, and there is no reason to pretend otherwise.
Following up on his State of the Union promise, President Obama will sign an executive order Tuesday to establish a new office focused on trade enforcement. Dubbed the Interagency Trade Enforcement Center, the office will be tasked with combating unfair trade practices around the world. The Obama administration has stated that it intends to crack down on trade violators, and this office is a major part of that plan.