Tuesday, March 16, 2010

And While I'm at it

. Tuesday, March 16, 2010

Meanwhile, Emmanuel-across-the-pond drools over the latest congressional hysteria about the renminbi. As the FT reports,

More than 100 members of the US Congress on Monday called on the Obama administration to label China a currency manipulator, in a move that highlighted the pressure on Washington to take a more confrontational stance towards Beijing.

In a letter to Timothy Geithner, Treasury secretary, and Gary Locke, commerce secretary, the 130 Congressmen demanded the administration designate China a manipulator when it issues its regular report on currency manipulation next month. They called for countervailing duties to be imposed on Chinese imports.

I myself am astonished to learn that the leaders of this movement represent states with major manufacturing industries. I would point out that "helping the American manufacturer" is costly for American consumers, most of whom do not work in manufacturing industries (and this is not because of China's currency policy). If the Democrats truly wish to represent middle-class interests, they shouldn't be so intent on reducing real wages.


Emmanuel said...


US protectionism = bipartisan

I too doubt whether jobs would return to America, but hey, anything to reduce global imbalances helps.

And While I'm at it
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