Categorized | Currency

Bernanke now on board with currency manipulation diagnosis

Share

Bernanke says trade deficits are bad and China’s currency undervaluation is a major problem.

Ben S. Bernanke, the Federal Reserve chairman, plans to argue Friday that currency undervaluation by China and other emerging markets is at the root of “persistent imbalances” in trade that “represent a growing financial and economic risk.”

Good.  What took you so long Ben.  Keep pumping out those dollars and buying Treasury Bonds.  Drop our currency value in relation to other countries (except China which has a peg) and build pressure on them to go after China.  And let China keep buying the dollars to maintain their peg.

Ben and Barack should now tell the Senate to pass a currency bill during the lame duck.

If Obama wants a second term, he needs currency reform to happen.  Job creation will only happen with an aggressive effort to tackle all forms of state managed capitalism.  If you balance trade, our economy grows very well thank you.

Share

One Response to “Bernanke now on board with currency manipulation diagnosis”

  1. Mo says:

    Bernanke even years ago has always mentioned that artificially undervaluing the exchange rate is a subsidy to exporters. The money printing stimulus packages are not creating jobs in the US because multinationals can make larger profits off foreign protectionism; so instead they are taking the money to create jobs overseas. Dell, GE and GM are planning to expand production in protectionist China. So this is showing that protectionism pays.

    Countries that require technology to be transferred, dump products below cost, have high tariffs on products made in the US, gives free real estate, tax payer money, central bank loans that never have to be paid back and manipulate their currencies are the countries getting the jobs from the US stimulus money. Based on paper exchange rates that are manipulated, it’s cheaper to employ foreign labor with US technology. So a country that creates new money out of thin air faster then the US will in most cases always have cheaper labor to employ with US technology.

Trackbacks/Pingbacks


Sign up for daily updates