Comments on: Stop Those Foreigners from Giving Us Such Great Deals!!! http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html where orders emerge Thu, 18 Mar 2010 17:27:30 -0400 http://wordpress.org/?v=abc hourly 1 By: peternavarro http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-2#comment-72749 peternavarro Sat, 28 Nov 2009 18:20:12 +0000 http://cafehayek.com/?p=7332#comment-72749 The problem I see is that most people don't understand the mechanics of currency manipulation and its relationship to China holding vast sums of U.S. debt. China does not do this to help us but rather to screw us by maintaining their hard dollar peg at an undervalued rate. <br><br>Peter Navarro<br>Professor, Merage School of Business<br>CNBC Contributor<br>(949)-357-9330<br><a href="http://www.peternavarro.com" rel="nofollow">http://www.peternavarro.com</a> The problem I see is that most people don't understand the mechanics of currency manipulation and its relationship to China holding vast sums of U.S. debt. China does not do this to help us but rather to screw us by maintaining their hard dollar peg at an undervalued rate.

Peter Navarro
Professor, Merage School of Business
CNBC Contributor
(949)-357-9330
http://www.peternavarro.com

]]> By: peternavarro http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-2#comment-72750 peternavarro Sat, 28 Nov 2009 18:18:12 +0000 http://cafehayek.com/?p=7332#comment-72750 China's growth IS at America's expense when it undervalues its currency and uses massive illegal export subsidies to dump its exports in the U.S. Free trade only works when both countries fairly compete. China cheaps by undervaluing its currency and the mechanism by which it keeps its hard peg to the dollar is to buy U.S. bonds. If you don't understand the mechanics of that, you can't possible understand the broader problem. So please, take some time to learn about the implications of China's hard peg to the dollar.<br><br>Peter Navarro<br>Professor, Merage School of Business<br>CNBC Contributor<br>(949)-357-9330<br><a href="http://www.peternavarro.com" rel="nofollow">http://www.peternavarro.com</a> China's growth IS at America's expense when it undervalues its currency and uses massive illegal export subsidies to dump its exports in the U.S. Free trade only works when both countries fairly compete. China cheaps by undervaluing its currency and the mechanism by which it keeps its hard peg to the dollar is to buy U.S. bonds. If you don't understand the mechanics of that, you can't possible understand the broader problem. So please, take some time to learn about the implications of China's hard peg to the dollar.

Peter Navarro
Professor, Merage School of Business
CNBC Contributor
(949)-357-9330
http://www.peternavarro.com

]]> By: peternavarro http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-2#comment-72751 peternavarro Sat, 28 Nov 2009 18:16:06 +0000 http://cafehayek.com/?p=7332#comment-72751 Higher wage countries like the U.S. can compete with lower wage countries like China because our rates of productivity are higher. The problem with China is that it uses an elaborate system of mercantilist tools like currency manipulation and high export subsidies to subvert free trade. Don't get hung up on the wage differentials. Focus on what makes free trade work -- floating exchange rates and the absence of protectionist and mercantilist policies. The bottom line is that China cheats and is screwing just about every other country in the world with its undervalued currency -- from Brazil and Peru to Russia and Thailand.<br><br>Peter Navarro<br>Professor, Merage School of Business<br>CNBC Contributor<br>(949)-357-9330<br><a href="http://www.peternavarro.com" rel="nofollow">http://www.peternavarro.com</a> Higher wage countries like the U.S. can compete with lower wage countries like China because our rates of productivity are higher. The problem with China is that it uses an elaborate system of mercantilist tools like currency manipulation and high export subsidies to subvert free trade. Don't get hung up on the wage differentials. Focus on what makes free trade work — floating exchange rates and the absence of protectionist and mercantilist policies. The bottom line is that China cheats and is screwing just about every other country in the world with its undervalued currency — from Brazil and Peru to Russia and Thailand.

Peter Navarro
Professor, Merage School of Business
CNBC Contributor
(949)-357-9330
http://www.peternavarro.com

]]> By: peternavarro http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-2#comment-72752 peternavarro Sat, 28 Nov 2009 18:11:02 +0000 http://cafehayek.com/?p=7332#comment-72752 China buys U.S. bonds to keep its currency undervalued. By undervaluing its currency, China sells the U.S. more exports and effectively taxes U.S. exports to China. By doing so, China gains manufacturing jobs at the expense of the U.S., Europe, and many other countries around the world. It is a "beggar thy neighbor" policy that is not intended to help the U.S. finance its budget deficits but rather to increase Chinese jobs at the expense of the U.S. manufacturing base. Please take a deep breath, cast your ideology aside for the moment, and just think about the underlying economics and their implications.<br><br>Peter Navarro<br>Professor, Merage School of Business<br>CNBC Contributor<br>(949)-357-9330<br><a href="http://www.peternavarro.com" rel="nofollow">http://www.peternavarro.com</a> China buys U.S. bonds to keep its currency undervalued. By undervaluing its currency, China sells the U.S. more exports and effectively taxes U.S. exports to China. By doing so, China gains manufacturing jobs at the expense of the U.S., Europe, and many other countries around the world. It is a “beggar thy neighbor” policy that is not intended to help the U.S. finance its budget deficits but rather to increase Chinese jobs at the expense of the U.S. manufacturing base. Please take a deep breath, cast your ideology aside for the moment, and just think about the underlying economics and their implications.

Peter Navarro
Professor, Merage School of Business
CNBC Contributor
(949)-357-9330
http://www.peternavarro.com

]]> By: peternavarro http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71970 peternavarro Sat, 28 Nov 2009 15:20:12 +0000 http://cafehayek.com/?p=7332#comment-71970 The problem I see is that most people don't understand the mechanics of currency manipulation and its relationship to China holding vast sums of U.S. debt. China does not do this to help us but rather to screw us by maintaining their hard dollar peg at an undervalued rate. <br><br>Peter Navarro<br>Professor, Merage School of Business<br>CNBC Contributor<br>(949)-357-9330<br><a href="http://www.peternavarro.com" rel="nofollow">http://www.peternavarro.com</a> The problem I see is that most people don't understand the mechanics of currency manipulation and its relationship to China holding vast sums of U.S. debt. China does not do this to help us but rather to screw us by maintaining their hard dollar peg at an undervalued rate.

Peter Navarro
Professor, Merage School of Business
CNBC Contributor
(949)-357-9330
http://www.peternavarro.com

]]> By: peternavarro http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71971 peternavarro Sat, 28 Nov 2009 15:18:12 +0000 http://cafehayek.com/?p=7332#comment-71971 China's growth IS at America's expense when it undervalues its currency and uses massive illegal export subsidies to dump its exports in the U.S. Free trade only works when both countries fairly compete. China cheaps by undervaluing its currency and the mechanism by which it keeps its hard peg to the dollar is to buy U.S. bonds. If you don't understand the mechanics of that, you can't possible understand the broader problem. So please, take some time to learn about the implications of China's hard peg to the dollar.<br><br>Peter Navarro<br>Professor, Merage School of Business<br>CNBC Contributor<br>(949)-357-9330<br><a href="http://www.peternavarro.com" rel="nofollow">http://www.peternavarro.com</a> China's growth IS at America's expense when it undervalues its currency and uses massive illegal export subsidies to dump its exports in the U.S. Free trade only works when both countries fairly compete. China cheaps by undervaluing its currency and the mechanism by which it keeps its hard peg to the dollar is to buy U.S. bonds. If you don't understand the mechanics of that, you can't possible understand the broader problem. So please, take some time to learn about the implications of China's hard peg to the dollar.

Peter Navarro
Professor, Merage School of Business
CNBC Contributor
(949)-357-9330
http://www.peternavarro.com

]]> By: peternavarro http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71972 peternavarro Sat, 28 Nov 2009 15:16:06 +0000 http://cafehayek.com/?p=7332#comment-71972 Higher wage countries like the U.S. can compete with lower wage countries like China because our rates of productivity are higher. The problem with China is that it uses an elaborate system of mercantilist tools like currency manipulation and high export subsidies to subvert free trade. Don't get hung up on the wage differentials. Focus on what makes free trade work -- floating exchange rates and the absence of protectionist and mercantilist policies. The bottom line is that China cheats and is screwing just about every other country in the world with its undervalued currency -- from Brazil and Peru to Russia and Thailand.<br><br>Peter Navarro<br>Professor, Merage School of Business<br>CNBC Contributor<br>(949)-357-9330<br><a href="http://www.peternavarro.com" rel="nofollow">http://www.peternavarro.com</a> Higher wage countries like the U.S. can compete with lower wage countries like China because our rates of productivity are higher. The problem with China is that it uses an elaborate system of mercantilist tools like currency manipulation and high export subsidies to subvert free trade. Don't get hung up on the wage differentials. Focus on what makes free trade work — floating exchange rates and the absence of protectionist and mercantilist policies. The bottom line is that China cheats and is screwing just about every other country in the world with its undervalued currency — from Brazil and Peru to Russia and Thailand.

Peter Navarro
Professor, Merage School of Business
CNBC Contributor
(949)-357-9330
http://www.peternavarro.com

]]> By: peternavarro http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71973 peternavarro Sat, 28 Nov 2009 15:11:02 +0000 http://cafehayek.com/?p=7332#comment-71973 China buys U.S. bonds to keep its currency undervalued. By undervaluing its currency, China sells the U.S. more exports and effectively taxes U.S. exports to China. By doing so, China gains manufacturing jobs at the expense of the U.S., Europe, and many other countries around the world. It is a "beggar thy neighbor" policy that is not intended to help the U.S. finance its budget deficits but rather to increase Chinese jobs at the expense of the U.S. manufacturing base. Please take a deep breath, cast your ideology aside for the moment, and just think about the underlying economics and their implications.<br><br>Peter Navarro<br>Professor, Merage School of Business<br>CNBC Contributor<br>(949)-357-9330<br><a href="http://www.peternavarro.com" rel="nofollow">http://www.peternavarro.com</a> China buys U.S. bonds to keep its currency undervalued. By undervaluing its currency, China sells the U.S. more exports and effectively taxes U.S. exports to China. By doing so, China gains manufacturing jobs at the expense of the U.S., Europe, and many other countries around the world. It is a “beggar thy neighbor” policy that is not intended to help the U.S. finance its budget deficits but rather to increase Chinese jobs at the expense of the U.S. manufacturing base. Please take a deep breath, cast your ideology aside for the moment, and just think about the underlying economics and their implications.

Peter Navarro
Professor, Merage School of Business
CNBC Contributor
(949)-357-9330
http://www.peternavarro.com

]]> By: LowcountryJoe http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71852 LowcountryJoe Fri, 27 Nov 2009 19:22:23 +0000 http://cafehayek.com/?p=7332#comment-71852 >>There is a lower limit to spending cuts. Cutting feet is not a solution for needing bigger shoes.<<<br><br>Somewhere under $1 Trillion or is that too much of a sacrifice, Mike? >>There is a lower limit to spending cuts. Cutting feet is not a solution for needing bigger shoes.<<

Somewhere under $1 Trillion or is that too much of a sacrifice, Mike?

]]> By: LowcountryJoe http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71851 LowcountryJoe Fri, 27 Nov 2009 19:19:35 +0000 http://cafehayek.com/?p=7332#comment-71851 >>Please do not comment, just indicate which ones, if any, you believe are false.<<<BR><BR>Who are you to tell me what to do? BTW, number three <I>is</I> false. The funds come back to the U.S. while the dollar denominated assets are held by the Chinese.<BR><BR>Now, what is any viable solution to force the Chinese to stop with the rest? Have any suggestions that promote fre(er) trade? Because The Chinese harm their situation far worse than they do ours. But I see that you suffer terribly from a make work bias. Maybe it's because you fret what you kids or grandkids will do since you aspire to have them do the jobs that the Chinese are doing for our consumption; perhaps you wanted them to be stichbitches in a textile mill?</BR></BR></BR></BR> >>Please do not comment, just indicate which ones, if any, you believe are false.<<

Who are you to tell me what to do? BTW, number three is false. The funds come back to the U.S. while the dollar denominated assets are held by the Chinese.

Now, what is any viable solution to force the Chinese to stop with the rest? Have any suggestions that promote fre(er) trade? Because The Chinese harm their situation far worse than they do ours. But I see that you suffer terribly from a make work bias. Maybe it's because you fret what you kids or grandkids will do since you aspire to have them do the jobs that the Chinese are doing for our consumption; perhaps you wanted them to be stichbitches in a textile mill?

]]> By: LowcountryJoe http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71850 LowcountryJoe Fri, 27 Nov 2009 19:11:09 +0000 http://cafehayek.com/?p=7332#comment-71850 That word "lenders" should be scratched and replaced with the word "borrowers" now that I've re-read it. With that correction made, can you think of an instance when people who have borrowed money use the borrowed funds to create opportunities to make more wealth and then repay the loan, making a net gain? I'm sure you can if you care to admit it [business expansion and property appreciation for examples].<br><br>Now, it would be great if this was occuring without a budget deficit but those are two separate issues. What's your thoughts on federal government spending, Mike? Because I'm pretty sure that I know your views on the freedom of people to transact their property across borders. That word “lenders” should be scratched and replaced with the word “borrowers” now that I've re-read it. With that correction made, can you think of an instance when people who have borrowed money use the borrowed funds to create opportunities to make more wealth and then repay the loan, making a net gain? I'm sure you can if you care to admit it [business expansion and property appreciation for examples].

Now, it would be great if this was occuring without a budget deficit but those are two separate issues. What's your thoughts on federal government spending, Mike? Because I'm pretty sure that I know your views on the freedom of people to transact their property across borders.

]]> By: Mike from Greece http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71742 Mike from Greece Wed, 25 Nov 2009 10:29:28 +0000 http://cafehayek.com/?p=7332#comment-71742 There is a lower limit to spending cuts. Cutting feet is not a solution for needing bigger shoes. <br><br>Which of the propositions below are you denying?<br><br>(1) China manipulates its own currency<br><br>(2) Jobs in the US are lost to China<br><br>(3) There is a huge transfer of funds from US to China<br><br>(4) There is a huge trade deficit with China<br><br>(5) The Chinese are involved in unfair trade practices by not letting their currency exchange rate determined by the markets.<br><br>Please do not comment, just indicate which ones, if any, you believe are false. There is a lower limit to spending cuts. Cutting feet is not a solution for needing bigger shoes.

Which of the propositions below are you denying?

(1) China manipulates its own currency

(2) Jobs in the US are lost to China

(3) There is a huge transfer of funds from US to China

(4) There is a huge trade deficit with China

(5) The Chinese are involved in unfair trade practices by not letting their currency exchange rate determined by the markets.

Please do not comment, just indicate which ones, if any, you believe are false.

]]> By: Mike from Greece http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71741 Mike from Greece Wed, 25 Nov 2009 10:16:02 +0000 http://cafehayek.com/?p=7332#comment-71741 "the lenders (people in the U.S.) borrow these funds more and more"<br><br>Do you have anyone in your household that can distinguish between a lender and a borrower? <br><br>The lender of borrowed money is a poor borrower himslef. This is all happening with his own money in the first place. The money comes from America and then turns America into a borrower. When in the history of mankind a rich country was turned into a poor borrower by borrowing its own monies back from someone who did not have shoes to wear before that started?<br><br>It takes your type of thinking and twisting around of facts to get to that degraded level. “the lenders (people in the U.S.) borrow these funds more and more”

Do you have anyone in your household that can distinguish between a lender and a borrower?

The lender of borrowed money is a poor borrower himslef. This is all happening with his own money in the first place. The money comes from America and then turns America into a borrower. When in the history of mankind a rich country was turned into a poor borrower by borrowing its own monies back from someone who did not have shoes to wear before that started?

It takes your type of thinking and twisting around of facts to get to that degraded level.

]]> By: Mike from Greece http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71444 Mike from Greece Wed, 25 Nov 2009 07:29:28 +0000 http://cafehayek.com/?p=7332#comment-71444 There is a lower limit to spending cuts. Cutting feet is not a solution for needing bigger shoes. <br><br>Which of the propositions below are you denying?<br><br>(1) China manipulates its own currency<br><br>(2) Jobs in the US are lost to China<br><br>(3) There is a huge transfer of funds from US to China<br><br>(4) There is a huge trade deficit with China<br><br>(5) The Chinese are involved in unfair trade practices by not letting their currency exchange rate determined by the markets.<br><br>Please do not comment, just indicate which ones, if any, you believe are false. There is a lower limit to spending cuts. Cutting feet is not a solution for needing bigger shoes.

Which of the propositions below are you denying?

(1) China manipulates its own currency

(2) Jobs in the US are lost to China

(3) There is a huge transfer of funds from US to China

(4) There is a huge trade deficit with China

(5) The Chinese are involved in unfair trade practices by not letting their currency exchange rate determined by the markets.

Please do not comment, just indicate which ones, if any, you believe are false.

]]> By: Mike from Greece http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-71439 Mike from Greece Wed, 25 Nov 2009 07:16:02 +0000 http://cafehayek.com/?p=7332#comment-71439 "the lenders (people in the U.S.) borrow these funds more and more"<br><br>Do you have anyone in your household that can distinguish between a lender and a borrower? <br><br>The lender of borrowed money is a poor borrower himslef. This is all happening with his own money in the first place. The money comes from America and then turns America into a borrower. When in the history of mankind a rich country was turned into a poor borrower by borrowing its own monies back from someone who did not have shoes to wear before that started?<br><br>It takes your type of thinking and twisting around of facts to get to that degraded level. “the lenders (people in the U.S.) borrow these funds more and more”

Do you have anyone in your household that can distinguish between a lender and a borrower?

The lender of borrowed money is a poor borrower himslef. This is all happening with his own money in the first place. The money comes from America and then turns America into a borrower. When in the history of mankind a rich country was turned into a poor borrower by borrowing its own monies back from someone who did not have shoes to wear before that started?

It takes your type of thinking and twisting around of facts to get to that degraded level.

]]> By: LowcountryJoe http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-70936 LowcountryJoe Mon, 23 Nov 2009 01:00:50 +0000 http://cafehayek.com/?p=7332#comment-70936 Oh, <i>you</i> feel bullied. For someone who is so <b>prick</b>ly, I'd have thought you'd have some thicker skin. To know that I've gotten under yours as much as you did mine [because of your snarky-ass comments above], means that I was successful in bullying the bully. Oh, you feel bullied. For someone who is so prickly, I'd have thought you'd have some thicker skin. To know that I've gotten under yours as much as you did mine [because of your snarky-ass comments above], means that I was successful in bullying the bully.

]]> By: Seekingexports http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-70935 Seekingexports Sun, 22 Nov 2009 23:51:08 +0000 http://cafehayek.com/?p=7332#comment-70935 Poor Joe,ever the bully and never a wisp of success. Poor Joe,ever the bully and never a wisp of success.

]]> By: LowcountryJoe http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-70934 LowcountryJoe Sun, 22 Nov 2009 22:22:12 +0000 http://cafehayek.com/?p=7332#comment-70934 >>Low, as you get older you may develop sound ideas and valid arguments.<<<br><br>I might. I only hope that my development path turns out better than your's has so far.<br><br>>>For now, please practice on the playground...<<<br><br>Ha! Even away from the playground, you're still getting taken to school but aren't aware enough to realize it. >>Low, as you get older you may develop sound ideas and valid arguments.<<

I might. I only hope that my development path turns out better than your's has so far.

>>For now, please practice on the playground…<<

Ha! Even away from the playground, you're still getting taken to school but aren't aware enough to realize it.

]]> By: LowcountryJoe http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-70860 LowcountryJoe Sun, 22 Nov 2009 22:00:50 +0000 http://cafehayek.com/?p=7332#comment-70860 Oh, <i>you</i> feel bullied. For someone who is so <b>prick</b>ly, I'd have thought you'd have some thicker skin. To know that I've gotten under yours as much as you did mine [because of your snarky-ass comments above], means that I was successful in bullying the bully. Oh, you feel bullied. For someone who is so prickly, I'd have thought you'd have some thicker skin. To know that I've gotten under yours as much as you did mine [because of your snarky-ass comments above], means that I was successful in bullying the bully.

]]> By: Seekingexports http://cafehayek.com/2009/11/stop-those-foreigners-from-giving-us-such-great-deals.html/comment-page-1#comment-70848 Seekingexports Sun, 22 Nov 2009 20:51:08 +0000 http://cafehayek.com/?p=7332#comment-70848 Poor Joe,ever the bully and never a wisp of success. Poor Joe,ever the bully and never a wisp of success.

]]>