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November 08, 2010

Comments

DC

So it is interesting to see Obama in Korea and the not so warm response he has gotten from the Feds $600B "stimulus". I can remember talking to some friends of mine in China and they were all convinced that when Obama got elected he would devalue the currency and make the repayment to China worth less. This was a big concern then and has borne out to be true.

I don't think it is a bad policy for us, but the posturing from Asia has been interesting. It's also worth noting that this is only the beginning. I believe we will continue to let our currency decline and force our way back into a positive manufacturing position in the world. I've been annoyed that we have very strong agricultural and intellectual property economies, but have abandoned the manufacturing sectors.

JR

I find all the currency talk out of Asia to be pretty amusing. Government intervention in the currency markets rarely works the way it is supposed to, if at all. And China has other levers at its disposal to protect its export position.

I would love to see us go back to manufacturing but too many other things seem to conspire against us.

The law of unintended consequences is the only rule that seems to apply with any regularity.

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