Thursday, August 09, 2007
Reply From China Story
While the President has replied that any attempts by China to devalue the dollar as "foolhardy" I feel much better with the US Treasury Secretary Henry Paulson, saying that the idea would be "absurd".
Personally, I would still like to see China's reserve of our dollars shrink significantly. When you have one country owning such a large amount of US bonds, you then have a recipe for blackmail. To tell you the truth, I'd rather we cap the amount of bonds and foreign investment at a set amount, that way no one country can hold anything over our heads.
I'd also like to see this country get significantly further out of debt. Say a few billion at most. With government waste as high as it is, simple belt tightening would significantly help out in that arena. If China's trade gap doesn't start evening out, we can simply add tariffs or ask companies to move operations to another country and offer tax incentives to do so. You can even go one further by moving operations back to the US, but to more rural areas.
I've read stories where instead of moving an operation to China, India, or any other cheaper nation, companies have decided to move operations to Montana, Arkansas, and other rural states.
Travis
travis@rightwinglunatic.com
Personally, I would still like to see China's reserve of our dollars shrink significantly. When you have one country owning such a large amount of US bonds, you then have a recipe for blackmail. To tell you the truth, I'd rather we cap the amount of bonds and foreign investment at a set amount, that way no one country can hold anything over our heads.
I'd also like to see this country get significantly further out of debt. Say a few billion at most. With government waste as high as it is, simple belt tightening would significantly help out in that arena. If China's trade gap doesn't start evening out, we can simply add tariffs or ask companies to move operations to another country and offer tax incentives to do so. You can even go one further by moving operations back to the US, but to more rural areas.
I've read stories where instead of moving an operation to China, India, or any other cheaper nation, companies have decided to move operations to Montana, Arkansas, and other rural states.
Travis
travis@rightwinglunatic.com
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