Republican Senate Bill to Punish China for Her Currency Exchange Rate is Dangerous Selfish Politics


Once again, Republicans are at it again. They propose to punish China for her currency which they feel is undervalued and costs American jobs. They will focus our attention anywhere but on what really is necessary to cure our problems: tax increases on the rich and on wealthy corporations like the oil industry (which includes the repeal of “temporary” breaks) and cuts on our defense spending.


They blame China again as a “bogeyman” but ignore the fact that China is a poor country who is entitled to raise the standard of living of her people. Much of her poverty has been caused by the oppression of China by foreign powers, especially the British who invaded China to sell her Opium, thereby destroying her national security, her political and social institutions, and addicting perhaps half of the population to a substance very similar to heroin. Let us not forget the invasion by Japan, another foreign power who was given a free “pass” by America after World War II because of our fear of communism. No trials for war criminals who were as evil as Hitler’s Nazis and SS, no war reparations, and no national admission or recognition of Japan’s crimes.

China has a very justified fear of foreign intervention, which is exactly what America now proposes to do, albeit in an economic form. Foreigners have intervened in China for over a Century. China’s currency exchange rate is her own business. As I have argued in another post, if China does not have a proper exchange rate, she hurts herself and benefits America as much as she might gain advantage in certain aspects. She faces inflation, if her currency exchange rate is not set properly, and eventually, what the USA experienced inflation with economic stagnation. I am not saying that is her future. But that is the risks of an abnormally low exchange rate. She has to pay more for the all-important and increasingly scarce commodity, oil. And as I have pointed out, there are certain commodities where the demand remains relatively the same regardless of the price, such as oil, such that it is to the advantage of a country to have a high exchange rate, and thus pay less, for that commodity. China’s alleged artificially low exchange rate only makes her spend more of her foreign reserves on oil, thus infusing the world with much needed economic stimulus.

More critically, at this time where our budget deficit is in crisis, and we are more dependent on foreign loans than ever for our very survival, when liquidity threatens every financial institution and system in America and Europe, how can we risk a trade war with the one country which extends us a lifeline by lending us their foreign reserves?

It is more politics, and politics as usual, which has become political treason. Our elected officials, especially Republicans, care only for their own reelection and the election of their friends and cronies so they can increase their own power at the expense of our entire country. Due to our system of “checks and balances” which require both houses of Congress and the President to enact legislation, nothing ever gets done. Our infrastructure is crumbling at the same time as people go unemployed. Has anyone noticed how China invests in her infrastructure? Shall she be criticized for that as well? I have never doubted our two party system and short terms for elected officials before, but in the hands of people who care nothing for our country, these hallmarks of our democracy have caused paralysis instead. At least, as an aside, we need to abolish the Senate filibuster and the 60% majority required for closure.

Let’s stop blaming others for our problems and set about fixing them. We need a much better system of education, with a focus on the jobs our society will need done in the future. We need to focus on our crumbling infrastructure (which initially made us wealthy) and employ the massive numbers of unemployed (with the proper training and education) to begin to effectuate these projects. Yes, they will be costly. But the investment is well worth it. Perhaps now is not the time to worry about our budget deficits. The problem is not how much money we spend, but where and how we spend it. Furthermore, if we need to reduce these, there is only one clear moral and practical approach. The President’s Jobs Bill sought to tax those who earn more than a million dollars a year. That is not to tax “Millionaires.” The definition of a “Millionaire” is someone with assets which exceed in total one million dollars. Someone who earns more than that a year can certainly afford to be taxed some more beyond our reduced tax rates (remember, our tax code was drastically changed to cut the taxes such people paid, which used to be around 50%).

People are being kicked out of their homes due to foreclosure rates which exceed those of the great depression. Unemployment levels are reaching catastrophic levels (due to the mismanagement of the economy by George Bush, the lag effect of economic policies, and the paralysis in the Congress). Protests are filling Wall Street, and lately cities around the world, and, as I heard last night, going worldwide. We need brave new measures, from caring politicians, such as those enacted by FDR during the Great Depression (which seems to be where we are headed). Republicans need to stop worrying about their theocracy of religious intolerance and related agendas and stop serving the special interest groups who keep them in power through large political donations.

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About davidmginsberg

This is a more limited, more international version of my full blog, which is currently on Google. It may replace my entire blog since Google's Blogger is blocked, I understand, in China (even though my Blog is favorable to China), and China is of interest to me. My full blog is currently at http://usa-china-international.blogspot.com/ and a link to it with more information about me is at http://www.chinablognetwork.com/general/david-ginsberg-international-and-domestic-blog. This is ironic that a Blog site in China, listing China related sites, lists my blog, but prohibits Chinese people from visiting my Blog, which, at worst, has posts which have nothing to do with China, and at worst, has blogs which speak favorably of China.
This entry was posted in Budget, Budget Deficit, China, Congress, Deficit, Depression, Exchange Rate, FDR, IMF, Infrastructure, Monetary, Opium, Oppression, President Obama, Protests, Public Works, Punitive, Recession, Republican, Senate, Uncategorized, Wall Street and tagged , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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