China Educates Washington DC on Exchange Rates

The past few days have been interesting as various U.S. leaders make noise about new "quantitative easing" actions and further debasing (i.e., manipulating) the U.S. dollar.  At the same time, our distinguished leaders attempt to lecture China about what they see as China manipulating the yuan.  In fact, China has done a commendable job of maintaining a fairly stable economy and currency through all of the turmoil from the largely self-inflicted U.S. financial crisis and "Great Recession."  As a public service, a Chinese economics teacher provides an education about what China is doing and why and also where the current foolish course of U.S. action will lead if certain U.S. leaders do not come to their senses fairly quickly.

When choosing the candidates who get your vote, make sure they understand that current U.S. exchange rate and quantitative easing actions will cause serious problems and need to change.

Democrat Economic Plan: "It's All China's Fault"

Apparently, this is the best the Congressional Democrats can do as they continue to try everything to get the economy growing, except anything which actually works.  The Democrats' acts of economic futility include multiple rounds of Keynesian "stimulus" and the ongoing debasing of the value of the dollar.  There are also the Democrats' hopes, all reason and history to the contrary, that ObamaCare,  the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the expiration of the Bush tax cuts will somehow get the economy back on track.

The Democrats' latest act of futility is to blame China for everything wrong with the U.S. economy:

• The Chinese trade surplus with the U.S. is somehow a "problem."
• China "manipulates" its currency, the yuan, to keep it "undervalued."
• China is somehow "stealing" U.S jobs through "outsourcing." 

The Democrats' answers are more protectionism and for China to raise the value of the yuan to whatever value (currently unspecified) which the Democrats find acceptable.  The economic relationship between the U.S. and China is one of the most important in the world which affects many other countries as well.  Perhaps Nancy Pelosi, Harry Reid, and the rest of the Democrats can explain what they hope to accomplish by putting the US-China relationship at risk.

What is scary here is how little the Democrats apparently know about the U.S. economy and how to get it growing.  When choosing the candidates who get your vote, find out whether they support the Democrats' economic mythology which could lead to a repeat of the Great Depression, or if they support taking actions which are demonstrated to get the economy growing.