If our politicians had 1/1000 of the brain of Steve Jobs, we would be in better shape. Recently they accuse China for depreciating the currency. We will not gain anything, but lose a lot.
* From recent history, China will retaliate like stopping our export of chicken feet, a delicacy over here but not fitted to feed our cows. Not to mention selling them airplanes and other farm products.
However, we started the trade war first by new taxes on Chinese tires and solar panels via the lobby groups/special interest groups. China retaliated with import cars... Our politicians always seek short-term solutions to satisfy certain groups or groups paying them money.
China is the best of the cheap labor countries, but there are many who will take China's place and we do NOT gain any job. The $20 wage will never compete with a $2 wage.
* China will not care about our economy if we do not allow their import. To pull back the trillions of debt is a no brainer to them. Again, our politicians have less than 1/1000 of the brain of Steve Jobs, and stupid folks will do stupid things.
* We hypocritically depreciate our USD by QE1, 2, and potentially 3. Hence, we try to lower our debt burden.
* It hurts US in the future by forcing a lot of pro US decision makers in China losing power/positions. Do you remember the Chinese missile scientist was falsely accused of being a communist and was forced to return to China and became the father of Chinese missiles? History is repeating itself.
The silly politicians insult our intelligence by blaming all our ills on China as they cannot fix our problems. They want to be re-elected and we should never fall into their stupid trap. We are not as stupid as our leaders as it would start the double dip recession.
(c) TonyP4 2011. Written in 10/7/11. Updated 10/7/11.
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Disclaimer: All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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