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.
Tag Archives: Currency Manipulation
For decades now, policies of “free trade” have been pushed on us, with the guarantee they would strengthen our economy and bring more jobs to the U.S. Instead they have stripped jobs from our shores. At one point it looked like we would have a President who supported changing our “free trade” agreements.
While our economy is struggling, Chinese brands are expanding and gaining a bigger role in the world wide economy. China’s biggest e-commerce company is going public. With a valuation that could reach as high as $200 billion, Alibaba could be the second-largest Internet company in the world, behind only Google.
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.
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.