{"id":165,"date":"2009-11-16T16:10:26","date_gmt":"2009-11-16T21:10:26","guid":{"rendered":"http:\/\/jparnell.com\/blog\/?p=165"},"modified":"2009-11-16T16:10:26","modified_gmt":"2009-11-16T21:10:26","slug":"the-chinese-lecture-obama","status":"publish","type":"post","link":"https:\/\/battle4liberty.com\/?p=165","title":{"rendered":"The Chinese lecture Obama"},"content":{"rendered":"

You know things are bad when the Chinese lecture you about free market economics. Recall the laughter Geithner received from Chinese students five months ago when he assured them that their dollar-based assets were secure. Well, the following appeared in this morning’s Wall Street Journal<\/em>:<\/p>\n

Liu Mingkang, chairman of the China Banking Regulatory Commission, said that a weak U.S. dollar and low U.S. interest rates had led to “massive speculation” that was inflating asset bubbles around the world. It has created “unavoidable risks for the recovery of the global economy, especially emerging economies,” Mr. Liu said. The situation is “seriously impacting global asset prices and encouraging speculation in stock and property markets.” Early Monday, a spokesman for China’s Ministry of Commerce added further criticism of the Obama administration, targeting recent measures by Washington against Chinese exports. “We’ve always known the U.S. and the West as free market economies. But now we’re seeing a protectionist side,” the spokesman, Yao Jian, told a monthly press briefing. Mr. Yao also rejected criticism of China’s currency policy, saying the yuan’s exchange rate has little to do with trade imbalances with the U.S. and that China should keep the exchange rate stable.<\/em><\/p>\n

Liu Mingkang must have ready my post last week on the state of the economy. The Fed is keeping interest rates too low (below market rates), encouraging risky and otherwise questionable investments that would otherwise not be made. Our economy should be adjusting to the recession by allowing the transfer of capital from less productive enterprises to more productive ones. Instead, the Obama administration and the Dems in Congress are spending massive amounts to control the economy and discourage this regenerative process. It’s a blend of Keynesian economics and Marxism that even perplexes the Chinese.<\/p>\n

I don’t agree with the Chinese position on the yuan’s exchange rate. The weak dollar is supposed to be good for exports in the short run, but has little effect on trade with countries like China whose currency value is largely tied to the dollar anyway. We can’t really lecture the Chinese on letting the market determine currency exchange rates when we are attempting to control the market in every other respect. Either the market works or it doesn’t.<\/p>\n

The problem is really bigger than this. The U.S. is no longer the standard for free market economics. We’ve traded our moral authority and influence in the world for “change we can believe in.” I just hope we can keep a lid on the current socialist experiment until the 2010 elections.<\/p>\n","protected":false},"excerpt":{"rendered":"

You know things are bad when the Chinese lecture you about free market economics. Recall the laughter Geithner received from Chinese students five months ago when he assured them that their dollar-based assets were secure. Well, the following appeared in this morning’s Wall Street Journal: Liu Mingkang, chairman of the China Banking Regulatory Commission, said […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts\/165"}],"collection":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=165"}],"version-history":[{"count":0,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=\/wp\/v2\/posts\/165\/revisions"}],"wp:attachment":[{"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/battle4liberty.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}