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WSJ Editorial Board: Pro-Currency Manipulation

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The Wall Street Journal editorial board claims to be a protector of the purity of free markets.  And they decry government intervention.

Why, then, do they rail against efforts to rein in China’s trade cheating via state capitalism?  They really are anti-American and anti-economic recovery.  They have no concept of net trade flows… the fact that imports far exceed exports.

Their recent editorial, last Friday, hyperventilates about Obama’s “protectionist” trade enforcement efforts directed at China.  They are pro-government involvement and pro-cheating and anti-rule of law… for other countries.  A radio show host that interviewed me last month calls such people “free traitors”.

The depths of the WSJ editorial board lying is revealed in this statement:

Of particular interest to Presidential candidates, the election swing states Pennsylvania, Ohio and Michigan all make the list of top-15 state exporters to China in dollar terms, with export growth of 1,177%, 838% and 1,169% respectively over the past decade.

You read that right.  They cited Pennsylvania, Michigan and Ohio as states that benefit from rampant global trade cheating.  Unbelievable.  Those states have been decimated by Communist Party subsidized imports to the U.S. that displaced thousands of workers and companies in those states.

In general, anyone that talks about trade in an “export only” framework is either an idiot or a shyster.   Remember that Obama wants to double exports in the five years after 2010, but Bush already beat him to it from 2002 to 2007.  Exports almost doubled during those years, but imports grew faster… producing the biggest trade deficit in the history of the universe.

And the WSJ doesn’t want to neutralize currency manipulation.  How can they favor currency cheating by a foreign government run by communists that tariff our exports and subsidize their shipments to us?

Because Wall Street, Caterpillar, GE and the multinationals, Wal-Mart and Big Retail make money from this.

As Upton Sinclair once said: “It’s difficult to get a man to understand something when his salary depends on his not understanding it.”

8 Responses to “WSJ Editorial Board: Pro-Currency Manipulation”

  1. Richard says:

    It really is too bad. I refuse to read WSJ, and it used to be a favorite. There are still good reporters there although Bloomberg has taken some. But I simply do not trust their reporting to be accurate and unbiased. And it started with Murdock.

  2. William Ryan says:

    Hi Mike Stumo. If what you say is true and I know it is then it has become a smoke and mirror game before,during and after the election.They will kick this political issue down the road forever and as long as these big companies want that cheap labor they will get it any way they can. This to me is what Wall street is telling us and that there is not much that will get done about it in Washington short of a revolt that will probably not happen and they know it…This is why I believe we need to do the Congressional Reform Act before we can get anything done meaningful on trade in Washington.

  3. Tom T. says:

    Here is where the language makes trouble for reason. If Ohio had total sales of $3 worth of exports to China and then increased that next year to $3,000, then its exports increased a thousand fold but were still insignificant.

    In looking at the export data on Ohio,

    http://www.uscc.gov/trade_data_and_analyses/state_local_economic/2005/C%20Ohio%27s%20Export%20Markets.pdf

    one can see that publishing increased over 19 thousand percent. Still, we have huge trade deficits with China and a predation of our industrial base, due to the policies of the oligarchs implemented by their puppet politicians and sold by the likes of the Wall Street journal (Rupert knows how to make a buck in the media industry although not the most ethical or honest buck).

    The politicians supporting these forces are the exact opposite of our volunteer military. They are traitors as much to this country as our volunteer military are patriots.

    The big problem is that our society has the wrong incentives. Traitors should not be rewarded and our volunteer soldiers should not be shorted with the country’s economic resources. It is the rule of money or the interests of principals over principles.

    Tom T.

  4. Milt Heft says:

    Agreed that China is totally guilty for currency manipulation, but let’s not forget the HEART of the problem: OUTSOURCING of 50,000 AMERICAN factories to China (et al) leaving 5 million productive factory workers unemployed, plus at least 10 million more supportive service personnel. The finger points to our “Captains of Industry”. We have done this to ourselves.

    • TomT. says:

      Milt, I have always wondered whether it was plain old incompetence or corruption on why we have the policies that have wrecked the nation’s economy. I have come to the conclusion that it has to be both. Overwhelming evidence is ignored by the incompetent who serve the corruption. We now have a political class that can neither run the country in the country’s national interests nor can they learn from their mistakes (or they just plain won’t learn).

      The Glass-Steagal Act was undermined by an overwhelming majority in the House and Senate from both parties. There were very few dissenters. The same goes with our trade agreements and lack of enforcement of necessary principles in global trade. All of this was to serve the greed that has captured our political elite.

      You are right that it is the “Captains of Industry” who have pushed these policies for their self interests. It is equally right to say that we have had politicians who act more like sock puppets to these forces than people who should manage the economy or the nation.

      I read the WSJ article and many of the comments. I think the majority of Americans understand the problems we have had in our trade policies. It has basically decreased the value of American labor, or at least what they get paid. Unchanging and deluded politicians will find themselves in an increasing minority.

      Tom T.

  5. Linda says:

    The WSJ drank the outsourcing Koolaid long ago.

  6. Tom T. says:

    Quantitative Easing is on the way:

    http://www.huffingtonpost.com/2012/08/22/federal-reserve-_n_1823353.html

    This is the reaction to to what trade deficits cause in the economy. Quantitative easing basically devalues the dollar relative to other currencies.

    Tom T.

  7. robert says:

    It has been proved beyond a shadow of a doubt that China’s (an others’) trade strategy involves cheating on currency and using BAT/VAT as a trade weapon. The tangle most companies have to manage to export to so-called trading partners is another weapon. That the WSJ editorial board condones such behavior and masks it with a “free trade” mantra says that they really don’t give a flip about the United States (from which they benefit greatly), its future and the future of the country for their descendants. They are un-American at best. Just the kind of self-serving apologists we need in an increasingly hostile world. The strength of the United States is paramount to world peace, among other important issues….. One has to wonder about the integrity and character of such people. Traitor isn’t a bad description as mentioned by Tom.

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