China’s currency has averaged a 2% annual increase since 2010. The UK and Euro have increased about 19 times each. Every country is a currency manipulater including the USA. It’s why bond interest rates rise and fall.
Drumpf will prolly be his usual self and not label our allies manipulators while doing the opposite for China.
The millions of manufacturing jobs idiot-elect claims China stole have all been automated. The rest of the outsourced manufacturing jobs make consumer products cheaper. Outsourcing also has led to a boom in transportation, logistics, and delivery jobs. ☺
Blame Multi-National Corporations, MNCs, for relocating jobs to Latin American and Southeast Asian (SEA) countries along with greedy shareholders. MNCs have this retarded business model that demands never ending growth.
Basic biology 101 states populations grow, plateau, then die like the Phoenix. The Japanese economy is a fine example in the beauty of price deflation. Price deflation is great for everyone not government or in vulture capitalist businesses.
Price deflation means there is loads of innovation and competition which benefits consumers with more purchasing power due to lower prices. Westerners have an obesity challenge because food is subsidised by Big Brother. SEA people don’t have an obesity challenge because the governments care about people’s long term health and not overburdening the medical system.
The main reason USA healthcare insurance rises by double digits annually is lack of competition. There are 5 big healthcare insurers in market capsize (pun intended) United Healthcare, Anthem, Cigna, Aetna, and Humana. Little to no competition supports inflation while loads of competition supports price deflation.
In countries where healthcare is universal like Thailand and Costa Rica costs are orders of magnitude less than USA health care prices. These governments are smart about controlling healthcare costs with their proactive healthcare models.
Their are two types of deflation, asset deflation and price deflation. In electronics, there are 1000s of competitors, so the same computer I bought in 2005 costs around $350 today vs $2437 adjusted for inflation.
Price deflation is good. Asset deflation is bad, but MNCs’ idiotic business model expects never-ending asset inflation.
I believe MNCs are the criminals not governments or free marketeers. Let’s not scapegoat China because it’s the du jour slag.
Tariffs are revenge oriented. When we tariff (tax) imports and exports, we are saying “fuck off” to our consumers. I’m still going to buy Japanese electronics with higher prices and Asian autos because they are made to last.
Mercan garbage is made to last until the warranty expires. Mercan products routinely break shortly thereafter. However, if investors want to increase their money net worth then the easiest way is becoming a minority shareholder and ride the coat tails of whales to financial nirvana!
As Mish from Global Economic Analysis recommends, free trade should include no tariffs.
My fav shoe company is New Balance based out of Boston, Mass. New Balance manufactures its products in the USA. The New Balance sneakers are a bit more expensive than say Nike, but New Balance supports both the Mercan worker AND customers.
Vulture capitalists routinely ask the government for more regulations because a wide moat reduces competition. The space duopoly shared by Lockheed-martin and Boeing are both fine examples of no competition and therefore trillion dollar pricing and blackmail power.
Vulture capitalists need to appease their major shareholders, institutional investors like state run pension funds.
In vulture capitalist centric economies like the European Union and USA, stuff isn’t made to last. It’s another reason of many I love SEA living. ☺
I toured the city of New Balance’s Boston in 2014, around 15km walk in yellow boardshorts and my Mamot sky blue raincoat. ☺
There’s only one problem – it’s not true anymore. China, the world’s second-biggest economy behind the United States, hasn’t been pushing down its currency to benefit Chinese exporters in years. And even if it were, the law targeting manipulators requires the U.S. spend a year negotiating a solution before it can retaliate.
What Dreams May Come~not me
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