All Posts Tagged With: "China"

The Great Sino-American Currency War

The economic relationship between the United States and China is often described as being “co-dependent.” The Chinese lend America money, and the Americans buy Chinese goods. If the Americans stopped buying Chinese goods, then people in China would lose their jobs, and if the Chinese stopped lending to America, then Americans couldn’t consume Chinese goods, and around and around as the story goes.

It is a complete mirage. Right now, the Chinese are dedicating a large portion of their economy (land, labor and capital) to produce cheap, depreciating consumer goods to sell to the United States. We pay for these goods with American dollars, and China’s domestic exporters have so far been happy to accept these dollars in exchange for their products.

These dollars flow …


It’s About Freedom

row-of-us-dollar-signsArthur Brooks, at  The Wall Street Journal suggests that there’s a bit of a culture war going on about the future of capitalism.  The headline suggests that “The Real Culture War Is Over Capitalism “

There is a major cultural schism developing in America. But it’s not over abortion, same-sex marriage or home schooling, as important as these issues are. The new divide centers on free enterprise — the principle at the core of American culture.

I dare suggest Brooks in this quote, has this exactly backward.  He’s pointing at a symptom and labeling at the root cause. Not that I blame him, really.  It’s been so long since we’ve dealt with things on the level of principle that even the more learned among …


More disasters

As if the recent cyclone disaster in Myanmar wasn’t bad enough, now comes word of a 7.9 magnitute earthquake in China that has killed more than eight thousand people including many schoolchildren still buried under rubble over the weekend. This earthquake was even stronger than the Tangshan earthquake of 1976, which killed more than 240,000 people died and it is feared that the death toll could go far higher. The tremors from this quake shook buildings throughout China and were felt as far away as Thailand and Vietnam, according to interviews and reports in China’s state media.

Here in the United States, crews are searching for storm survivors from violent storms that have killed twenty-three people (at last count) in Missouri, Oklahoma and Georgia over …


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