• RSS Ludwig Von Mises Institute of Austrian Economics

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Republican Liberty Caucus

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Freedom Watch

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Free Talk Live

    • FTL Digest 20171213
      Free Talk Live's Daily Digests feature highlights from our full-length seven-day-a-week live radio show, selected and edited by Riley Blake. Enjoying the digests? Please donate $5-10 per month to Riley via this link: https://www.patreon.com/crblake86 If you want to donate via bitcoin, you can do so at the following address: 1NytDNA14UcYsvzX5DHhzowGCqNou […]
    • Free Talk Live 2017-12-14
      Michigan State students find $21T in unauthorized spending :: DoD to conduct first ever departmentwide audit :: Reasons for high government spending :: Trump wants the federal government to use cloud-based services :: Government effenciency :: Ricky ordered pizza :: Ricky is now southern :: Trump wants to go to the moon :: Space travel :: Sarah says there wa […]
    • Free Talk Live 2017-12-13
      Bitcoin Power Consumption Fears :: Are average consumers ready for bitcoin? :: Two Factor Frustration :: Luddites :: Right to Eat :: Ricky and Right to Travel :: Resist the Empire Marathon :: Scary Digital Currency Regulations Proposed :: Bitcoin Investment and Altcoins :: Bitcoin Debit Cards :: HOSTS - Ian, Mark, Mike
  • RSS Break the Matrix

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Schiff Radio

    • Yellen Proclaims It’s Different This Time – Ep. 309
      Expected Rate Hike Today the Federal Reserve did exactly what everybody expected them to do, they once again raised interest rates by just one quarter of one percent.  This is the third rate hike of the year; this is the fourth rate hike since Donald Trump was elected President and the fifth time the Fed […] The post Yellen Proclaims It’s Different This Time […]
    • CNBC Becomes Crypto News BitCoin – Ep. 308
      Bitcoin Week I’m going to devote today’s podcast to bitcoin; I might as well just talk about bitcoin because that’s all anybody else is talking about.  On CNBC that’s pretty much all they are talking about; they said it is “BitCoin Week”.  It sure sounds like it.  I think they should just rename the network: Crypto […] The post CNBC Becomes Crypto News BitCo […]
    • Trump Continues What He Once Called the Biggest Hoax in American Politics – Ep. 307
      A Nonfarm Payroll Beat Today the labor department released the November jobs report –  Nonfarm Payroll –  of course Wall Street always highly anticipates this number; all the politicians, Donald Trump was ready to tweet as soon as the data was released.  The expectation was for 190,000 jobs and we beat, with 228,000 jobs. An […] The post Trump Continues What […]
    • Fake Tax Reform
      By: Peter Schiff, President and CEO Euro Pacific Capital After supposedly chomping on the bit for years to pass meaningful tax reform, Republicans are now set to blow an historic opportunity. Whatever version of the Bill that emerges from the House and Senate Conference Committee (which will be signed by President Trump faster than he can […] The post Fake T […]
    • Another Trump Flip Flop – Ep. 306
      Trade Deficit Moving Higher as Economy Slows Down Yesterday we got the release of the October monthly Trade Deficit and we got a trade deficit of $48.7 billion dollars.  That was a little bit North of the $47.4 billion expected in the consensus forecast.  In fact, the prior month, which was $43.5 billion was revised upwards to […] The post Another Trump Flip […]

Blaming China for our Problems

Last week president Obama met with China’s president Hu Jintao in what ended being a huge propaganda piece for the media.  Obama said that he’d like to see China’s currency, the yuan, appreciate at a much faster rate.  In his eyes, this would increase the quality of living for Chinese citizens and help our trade imbalances with the country.  At least Obama got one thing right.  Allowing the yuan to appreciate would definitely help improve the lives of Chinese citizens, but it’s a complete joke if we think this will help our trade imbalances.  As usual, Obama talked a lot of talk to make it sound like the US is giving China prudent economic advice, like we’re the ones calling the shots.  Talk about biting the hand that feeds you (literally)!  Behind the scenes I’d imagine that Obama is begging China to keep financing our debt and selling us cheap goods.  If they stopped buying our government bonds, this hole charade we call government would default so fast it would make anyone’s head spin.

Fed and Treasury Total Money (FTTM)

Another common complaint from economists and politicians in Washington is that the Chinese are currency manipulators.  This is also a misconception that places that blame on the wrong people.  The Chinese have pegged their currency to ours so that their product manufacturers and exporters can maintain some level of stability (we are the biggest buyers of Chinese products).  Thus, it is really us who are the currency manipulators thanks to the loose and reckless monetary policies of the Fed.  If you want to see an example of currency manipulation, check out the chart of our aggregate money supply!   As Bernanke continues to pull  the dollar down into a ditch, so does he pull down the yuan.  An unfortunate side effect of our money printing is that we are exporting our inflation to China and they are seeing food prices at an all time high.  This combined with the fact that the average Chinese citizen spends 50% of their income on food is causing lots of consumer frustration and even riots in some instances.

If the Chinese allow their currency to appreciate, their citizens will see a rise in their standard of living, but at the same time we will see a decrease in ours.  The US economy desperately relies on cheap goods from the Chinese and if all of a sudden more products are being consumed by Chinese citizens instead of being shipped abroad, that’s going to cause lots of problems for us.  We no longer have the manufacturing base that we once had, so it will be hard to find replacements for Chinese imports that are more expensive as the US consumers competes against the Chinese consumers on a more even playing field.  Once our standard of living starts to decrease, we better realize the cold hard truth that we desperately need to rebuild our manufacturing base and start exporting stuff once again.  However, as it currently stands, we are one of the most uncompetitive environments for creating new businesses, and if you consider manufacturing it’s even worse.

Therefore, Obama must be dreaming if he believes that having the Chinese yuan appreciate will solve our economic woes.  When the Chinese consumers have more purchasing power, they’ll just buy more of the stuff they already produce and there will be less of a pie for us since we have no pie to offer them.  The sooner the Chinese ditch their currency peg, the better off they’ll be.  We’ve been dragging them down by our reckless monetary policy for too long, and I’m hoping we’ll soon come to terms with this and start figuring out how to get our economy back on track.  An economy that no longer produces anything is one that’s not destined to last for too long, especially when the world rejects our inflated currency.  The only culprit that Obama should blame for our economy woes is ourselves, and more specifically our out of control Federal Reserve combined with our stifling regulations on business.  We need to once again make this nation the most free country in the world for not only civil liberties but also economic ones.  Freedom is the only solution, not blaming others.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: