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Romney/Obama stepping it up on the China debate

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Romney has increased the rhetoric on China, which is a good thing.  See the campaign video below. He is calling them “cheaters”, which is true, but not always said in polite company.  The China trade deficit issue, caused by cheating, is the biggest economic problem we have right now.

Obama has refused to respond on currency manipulation… rather he and Geithner keep using diplomacy to ask China to play fair on currency valuation, like Bush and Clinton before them.  While Obama has stepped up WTO enforcement cases, enforcement of WTO rules is simply not enough.  They are industry by industry, product by product.  China’s currency manipulation, VAT subsidies, super-charged state owned commercial enterprises, etc. are economy-wide problems.  Bigger solutions than trade law enforcement are necessary.

Romney should press Speaker Boehner to pass the currency manipulation bill (HR 639), but has not so far.  Romney’s specific pledge is that his administration would declare China a currency manipulator on Day One.  That’s better than Obama.  The cause for concern is that (1) there is no remedy to resolve the situation after declaring them a currency manipulator; and (2) Romney has refused to specify a remedy.

The ultimate solution is to set a balanced trade goal and take all necessary action to achieve it.  CPA’s 21st Century Trade Agreement Principles would help achieve a balanced trade goal.

That being said, the increased attention on the China issue is needed.  Here is the Romney video.

Here is the Obama campaign response video.

9 Responses to “Romney/Obama stepping it up on the China debate”

  1. Dr Bob Goldschmidt says:

    Open trade with any country whose wages are below our poverty level is damaging not only to the US but to the global economy. China, if left unfettered, will succeed first in undermining the US and European economies which in turn will destroy China’s export-based economy. We desperately need a reinstatement of tariffs for trade with China, before it is too late. Even if Chinas’ wages were to double every five years, they won’t reach our poverty level for 25 years!

  2. Joe Brooks says:

    Romney may have made himself unelectable. Most Americans do not want acknowledged Randian sociopaths running the government.

    We have had Randian sociopaths running the government; Clinton, Bush and Obama have all been wrecking the middle class thru totally Un American “free trade” for 24 years. That has worked out great.

    The idea that 47% of the population wants to be dependent on government is crazy. 90% of the folks he refers to are there because of the government’s destruction of the American School of Economics.

    The government does not have a responsibility to provide for everyone, but the Founders made it clear thru the Constitution, that it IS the governments’ responsibility to set up an environment that everyone can succeed in.

    Of course, the Founders method leads to far less Government, because those [the vast majority] that wanted an opportunity had it.

    “There are 47 percent of the people who will vote for the president no matter what,” Romney is shown saying in the video of a May 17 fundraiser in Boca Raton, Fla. “There are 47 percent who are with him, who are dependent upon government, who believe that they are victims, who believe that government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you name it.”

    Romney said in the video that his role “is not to worry about those people. I’ll never convince them they should take personal responsibility and care for their lives.”

    The below statement demonstrates that neither party has a clue what to do and is ridiculously ignorant, or far worse.

    “The Republican presidential nominee said the remarks showed a contrast between President Barack Obama’s “government-centered society” and his belief in a “free-market approach”.

    http://thecaucus.blogs.nytimes.com/2012/09/17/romney-faults-those-dependent-on-government/

    • Tom T. says:

      To be fair to Romney, I think he was saying that the 47 percent would not vote for him so he won’t go after their votes. The further explanation was worrisome.

      I agree with you, Joe, that the president needs to make sure that every person in the economy has a chance to be a part of the economy. We can’t have everyone on the government dole.

      The most worrisome part is that in crony capitalism, instead of having the creative destruction necessary, the cronies are able to break laws at will and get away with it because of their influence on the system. This means that there is a dog eat dog world of power plays, not an honest economy. If you are connected, you can have not only 3 strikes but any number of strikes and still be in the game. This disenfranchises the average person as to opportunities in a working economy and concentrates the wealth in power to those with unlimited strikes.

      This was one of the complaints Judge Rakoff had in a bank fraud settlement in what has been known as “rubber stamping” the deals for the strikes that have been a part of crony capitalism. This type of crony capitalism disenfranchises others who might make a business honestly of filling the demand in an economy. Instead, crony capitalism ensures that those with strikes get yet another chance because of the wealth they have.

      I am always struck when high income earners claim others do not pay as much or any income tax as (implied) they do. When I hear anyone say this, I automatically want their SS taxes to be applied to every bit of their income no matter where it comes from. Very few people know that the SS tax stops at $110,000.

      “For 2012, the maximum taxable earnings amount for Social Security (OASDI) taxes is $110,100. There is no limitation on taxable earnings for Medicare’s Hospital Insurance (HI) taxes.”

      Wall Street traders have been able to further their tax loopholes by counting earned income as long term income to be counted as capital gains and be taxed lower, in addition to paying no SS taxes on this money. It is clear that there is a segment of society that wants to keep their tax loopholes and perks while crying about the lower income earners not paying “income tax”.

      It is hypocrisy upon hypocrisy.

      The parasites and moochers are those who have ingratiated themselves with politicians who give them tax loopholes and tax definitions that allow them “justify” these loopholes.

      An economy must have as many people working in it as possible producing goods and services and as few as possible working in government or getting government checks for “nothing”. When crony capitalism is employed, opportunities to meet demand are captured by the few privileged who get innumerable strikes and even free walks at taxpayer expense when they strike out.

      This will not fix the economy.

      Tom T.

      • Joe Brooks says:

        Hey Tom,

        My main point is that the 47% he refers to are there because of government “free trade” policy [talk about central planning], not as a result of their own actions.

        Romney, Obama, most of the Senate and Congress are paid to be blind to this fact.

        Historically in the US there has been a tiny healthy 4/5% that is unemployed, even during times when full employment is available.

        To try to suggest that 1/2 half of all Americans would not work, educate and finance themselves, given a chance, is propaganda.

        • Tom T. says:

          Joe, you are right about that. When we have so many people on the government dole or working for the government instead of private industry, it is a failure of past government management that caused those conditions to happen. Basically, the underlying rules of the game were very poor for a large part of the population. Blaming the population for that, as you say, is just shifting blame from the policy makers to those who did not or could not participate in the system they set up.

          I totally agree with your point.

          We have seen that shipping manufacturing to China has decreased labor demand and incomes in the United States. Both parties have been involved in this bad policy so it is hard for them to say it was a wrong policy or point out its deficiencies.

          This argument is getting really close to the rapist blaming the one who was raped to occlude their own culpability.

          Tom T.

  3. Don A. McKenzie says:

    ROMNEY’S RHETORIC ON TRADE JUST DOES NOT FLY! OUT OF ONE SIDE OF HIS MOUTH, HE SAYS HE’S GOING TO GET TOUGH ON CHINA. ON THE OTHER, HE SUPPORTS THE WHOLE POLICY OF FREE TRADE! INCLUDING THIS NEW UN-CONSTITUTIONAL TRADE PACT CALLED THE TPP!
    AND THE FACT THAT HE’S PART OF THE WALL STREET ELITIST, PREDATORY FINANCIAL CLASS! YOU KNOW, THOSE WHO HAVE PUSHED HARD FOR WILLY NILLY FREE TRADE PACTS IN ANY AND ALL FORMS! AND WHO HAVE SPENT HUGE AMOUNTS TO LOBBY CONGRESS FOR THIS AGENDA! AND WHO HAS BEEN AGAINST ALL THE TRADE REFORM LEGISLATION, INCLUDING THE ONE THAT WOULD HAVE DIRECTLY ADDRESSED CHINA’S CHEATING! HOW CAN THE AMERICAN PEOPLE BUY INTO THAT EMPTY CAMPAIGN PROMISE? AND THEN THERE’S ROMNEY’S OUTSOURCING RECORD, & SO ON………….

  4. Jim Cochran says:

    Don, I participated in offshoring at IBM and definitely at HP. I thought only the multinationals who had been offshore for decades were partcipating in it. After leaving HP I found out it was more broad based. I changed my view when my research made me realize that it was an economic long term trend set up by Free Trade Agreements. Romney says HE did not participate in that and I would believe him based on his timing at Bain.
    However I have come to realize even in the last month that most of what is driving FTA’s is global alliances to “provide stability in th region”, and to “reduce the likelihood of wars”. Most times participating countries are being damaged internally in certain sectors and saying it is ok for this collateral damage so we can protect our power on influence. So governments and now even the US is picking winners and losers in their own economy.
    This is not good. Too much crossboarder dependency sets up stress and more likely to cause economic volatility and conflict. Don’t ever delete an industry- maybe a little outside competition is a good thing to keep prices in line but to decimate anything is not in line with life, liberty and the pursuit of happiness.

    So Romney showed the real leadership by bring this subject up and Obams followed by engaging with a token trade action. But as far as wall street they do need reigned in but this current administration has not really accomplished that – MF Global looted citizen,s DOJ Holder lets them get away with it – they just lost track of the money. GM settlement looted the Bond holders – ultimately citizens (I have talked to a few retirees) and give it to the Unions. The banking regs – I have seen several folks have to change banks because their bank signed up to connect to the security of the Fed gov and abide by their new regulations. The new ratios to extend loans separate them from cash to move their business forward and so after decades with a bank the capital is not longer available. The Obams administration on business has to be worse than anything a business man who has already made his would want to not save the middle class for some even in his large family and I trust mine as well – I am sure that is not true based on actions not media supported words from the Obama media. I research and look at all media – yes even Fox.

    • Tom T says:

      What the FTAs are really providing is profits for the oligarchs and a strengthening of the oligarchs as an emerging world power by pulling the strings of governments for their own benefit.

      Tom

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