It would be a different world if we taught economics in the public schools. I suppose there would still be the clash of Monetarists and Keynsians but we would not be in the constant state of Babble such as is our public discourse.
I believe the single most significant metric for economic success is strength of currency. Strength of currency vs. other currencies. Strength of currency vs. gold and silver. Strength of currency vs. commodities.
So I am not bothered by news that China is "manipulating" their currency. In other words, they are out Bernanking Bernanke. This is "Dumb and Dumber" played out by world titans. I expect the NPR crowd to fall for the non-tragedy (unless their true loyalties are to the People's Republic, a possibility we must consider) but it scares me when Donald Trump and Lou Dobbs complain about this.
In essence, the Chinese officials act against their people's best interest to make their citizens feel wealthier. In the process, those of us who purchase Chinese products (I plead guilty) get more for their dollar (or Euro. Or Peso. Or Pound.) At the same time, they are making the rest of the world slightly more wealthy. We can purchase discount sneakers even as gas and oil and commodities go through the roof. Last fall I purchased four sets of Starters at Walmart for $9/pair. I am sure sneakers are a little more now but I doubt if sneaker prices are rising in tandem with oil prices.
There are a few lessons that we can draw from the manipulation scare but one stands out. Even those people who share a better than average understanding of economics can be tripped up by simple concepts. Beware the fiscal conservative who does not understand the merits and demerits of currency strength. It does not matter how much cash they might have in their mattresses. If they are not committed to a strong dollar (and the devaluing of rival currencies) then we might as well stick with Obama and Geithner and Bernanke.
Manipulate, China. Please, please manipulate!
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