In his “enough’s-enough” speech in Hawaii, Obama castigated China for its currency peg, a perennial complaint. Congress too regularly hyperventilates about the yuan being “artificially undervalued.” If China just allowed the yuan to trade freely, they say, it would solve the U.S. economic quagmire. Cheap political posturing—and full of bitter ironies.
China
The Eurozone Turns Down Chinese Money And Quid Pro Quo
by Wolf Richter • • Comments Off on The Eurozone Turns Down Chinese Money And Quid Pro Quo
For months, rumors China would use its foreign exchange reserves to bail out the Eurozone with the stroke of a plastic pen goosed financial markets. But China has a list of demands. German industry refuses to cede ground. People shudder at becoming dependent on money from the communist regime. Clearly, the debt crisis isn’t deep enough yet.
The Brutal Trade Deficit
by Wolf Richter • • Comments Off on The Brutal Trade Deficit
At $46 billion in August and a hair-raising $376 billion year to date, the trade deficit is a powerful descriptor of what’s wrong with the U.S. economy. By year end, it will amount to half a trillion. Economic activity gone overseas. The cause: an ancient and valid business principle that is now harming the overall economy.
The China Bubble Makes Contact with A Cactus
by Wolf Richter • • Comments Off on The China Bubble Makes Contact with A Cactus
Bubbles go on much longer than a rational mind can fathom, especially bubbles that are supported by governments and central banks. Everyone benefits, so everyone (except for a few hapless shorts) pushes to keep them going. But when they burst, they wreak havoc. And in China, there are new ominous signs.
Cubilose Business: Poisonous Blood Nests Still A Delicacy in China
by Wolf Richter • • Comments Off on Cubilose Business: Poisonous Blood Nests Still A Delicacy in China
China Puts The Screws To BMW
by Wolf Richter • • Comments Off on China Puts The Screws To BMW
And BMW blinks. With sales of new vehicles approaching 18 million units in 2011, China is the largest car market in the world, far ahead of the US. No major car maker would want to miss out on the opportunities in China. Yet, there is a problem: Pressure by the Chinese Government to transfer the newest technologies.
Obama: Gut Social Security Now, Don’t Wait Till The Election
by Wolf Richter • • Comments Off on Obama: Gut Social Security Now, Don’t Wait Till The Election
Red-Hot Inflation Blows across the Pacific
by Wolf Richter • • Comments Off on Red-Hot Inflation Blows across the Pacific
Unholy Alliance
by Wolf Richter • • Comments Off on Unholy Alliance
The President’s Council on Jobs and Competitiveness has descended on Palo Alto to meet with the usual suspects in Silicon Valley. Their topic, hilariously: How the public and private sectors can team up to create jobs. Hilariously because California—Silicone Valley in particular—has been on the forefront of transferring jobs to China and other countries.
Remember him? Creating jobs in China….