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Archive for the ‘complete fucking stupidity’ Category

I have said it before and I will say it again, Congress is a rotten, stinking corpse.  It is no wonder that it currently has the lowest approval rating of all time.  This week more ridiculous legislation was introduced in that body that will only make our lives worse.  The bipartisan bill that was introduced would punish any country that practices currency manipulation as an unfair trade subsidy.  It would give President Obama the ability to impose retaliatory protectionist measures to level the playing field.  Of course, the impetus for the legislation is China’s alleged undervaluing of its currency, the yuan, in order to support Chinese exports to other countries.

Now, it’s funny, how the legislation comes in an election year when there is a very strong anti-incumbent mood amongst the electorate.   Many Americans who have lost their jobs in this depression are naturally fixated on statements from Washington dealing with job creation.  So as not to disappoint, Democratic Senator Charles Schumer was quoted as saying, “”There is no bigger step that we can take to promote job creation here in the US than to confront Chinese currency manipulation.”  This sounds logical on the surface, but upon closer analysis the senator as usual has it all wrong.

In the first place, to even threaten protectionist measures in such a fragile economic environment as we live in is dangerous.  The Smoot-Hawley Tariff was passed in 1930 and placed protective tariffs on thousands of imports coming into the United States from abroad.  At the time, during the Great Depression, its purpose was to protect American jobs.  Sound familiar?  Instead, the tariff caused our trading partners to retaliate with tariffs of their own thereby exacerbating an already horrendous employment situation.  What makes our politicians believe that China would not retaliate with protective measures of its own or worst yet cause the collapse of our currency by flooding the world markets with hundreds of billions of dollars it keeps in reserve?

But secondly, and much more importantly to our situation, we need inexpensive Chinese products otherwise our inflation rate would be through the roof and unemployment would be right there with it.  Here is the vicious cycle of events that is American/Chinese trade relations.  China’s products are cheaper because the cost of doing business there is less than in the U.S.  Thus, we purchase Chinese goods with dollars and treasury notes. China holds these dollars and interest-bearing bonds in reserve and then prints yuan to pay off the Chinese suppliers of our purchases.  When the smoke clears, we get cheap Chinese goods to buy, the Chinese manufacturer makes a profit, and the Chinese government acquires more units of the world’s reserve currency.  Everybody wins, right?

If the Obama Administration ends this cycle by imposing protective tariffs on Chinese goods coming into the United States, not only will the Chinese government reciprocate with retaliatory measures of its own, the prices of goods in the U.S. will rise sharply.  You see right now we export our inflation to China by way of treasury bonds and newly printed Federal Reserve notes.  Without the ability to export our debt and a lot of the dollars the Federal Reserve has been printing, all of that liquidity will be spent in the U.S. instead on more expensive goods.  As more money enters our economy prices in general will be bid up and will rise and given how much the Federal Reserve has inflated the money supply over the last few years prices will rise by a lot.  At that point, Economics 101 tells us that high prices will squelch demand and huge increases in unemployment will result.

Since the 1970s, the politicians in Washington have placed us in this no win situation with regard to trading with China.  They have destroyed our industrial base with unconstitutional mandates and regulations, and collective bargaining laws.  They have spent us into oblivion by financing a welfare/warfare state unmatched in human history.  If we impose protectionist measures against China we will incur inflation in the short run and high unemployment in the long run.  If we continue to borrow from China to buy their inexpensive goods we put ourselves on an unsustainable course.  At some point, if it isn’t happening already, China will stop financing our purchases and absorbing our inflation.  They will sell their goods elsewhere and Americans will pay higher prices.  Our standard of living will plummet and China will replace us as the world’s number one economic superpower.

But, Chuck Schumer and his colleagues on the Hill are oblivious to all of this.  Of course, they also ignore the fact that the Federal Reserve is the biggest currency manipulator in the world.  Ben Bernanke and his cabal of economic central planners better known as the Federal Open Market Committee fix interest rates and determine the supply of money.  These actions directly determine the value of the dollar.  Before Congress complains about China for not using market forces to value the yuan it should look in the mirror. 

And that is really why I consider Congress a rotten, stinking corpse.  Time and again its members grandstand for personal political gain and leave the American people with the mess.  Its hypocrisy is appalling.  Lastly, it seems like it is constantly coming up with cockamamie schemes to ruin our economy further.  This latest scheme places the blame on China for our own financial incompetence.

Kenn Jacobine teaches internationally and maintains a summer residence in North Carolina.

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h/t Delaware Libertarian.

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“Artist Scott Donahue of Emeryville, Calif., was paid $196,000 by Berkeley’s public arts program to create two large statues, which feature small, artistic medallions that show dogs doing what dogs do best.

“‘Various things,’ Donahue said. ‘Biting each other, chasing each other…. One dog is defecating, two dogs are fornicating.’

All that spending comes with one hell of a dog knot.

I wonder if taxpayers will finally have had enough of being the government’s bitch, or will they be like these fratboys and keep lapping it up? (warning: disgusting)

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Nevada’s Republican Lt. Gov. Brian Krolicki was indicted today by a grand jury on four felony counts related to his previous stint as state treasurer: 2 counts of Misappropriation and Falsification of Accounts By Public Officer, and 2 counts of Misappropriation by Treasurer. Krolicki had just last week announced he planned to run against Harry Reid for Senate in 2010, and claims this indictment was a politically motivated conspiracy hatched by Reid and Nevada’s Democratic Attorney General. The main problem with his story is that the indictment is hardly out of the blue. It has its roots back in January 2007, when the State Treasurer who took office after him, asked and received permission for an audit looking into possible improprieties. Krolicki even admits he was informed about a probable grand jury indictment late in November, so he announced his intention to run against Reid knowing it was coming.

The Hill happily pimped Krolick’s claim in an article titled: Top Reid challenger indicted.  In the article The Hill also mentioned that two other Republicans, who were considered possible challengers to Reid in 2010, had their political fortunes greatly decreased by losing their reelection bids last November. One of those was Congressman Jon Porter, and the other was State Senator Joe Heck. From The Hill article:

The two GOP names most often floated as top-notch challengers, however, have had difficult years of their own. Rep. Jon Porter, who represents Southern Nevada’s 3rd district, just lost his bid for a fourth term to state Sen. Dina Titus; and state Sen. Joe Heck lost his seat by fewer than 1,000 votes thanks to a Libertarian candidate.

Thanks to a Libertarian candidate? Not due to Heck’s lack of appeal in his district? The Hill conveniently failed to mention that an IAP candidate was a fourth contender in the field, who performed fairly well.

Candidate Party % vote votes
BREEDEN, SHIRLEY DEM 46.57% 46,420
HECK, JOE REP 45.81% 45,655
HAGAN, TIM LIB 4.77% 4,754
BLANQUE, TONY IAP 2.85% 2,843

Source: Nevada Secretary of State

Given the political views of Independent American Party members, it seems much more likely that Heck lost, “thanks” to the IAP candidate, not the Libertarian.

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Nothing to add to what’s been said about this by others.

Just my attempt to get a threadjacking off IPR and bring it to where it is on subject. That is, here.

If you have thoughts on the question, whether you find this from IPR or elsewhere, please add them in the comments.

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