I just met with both a French journalist and a US-born freelancer. We have many things in common except when it came to currency manipulation of China. They said China is manipulating its currency. And I agreed with them. What China is doing is stifling global economic growth, they went on.
I only agree with the notion that China’s moves are stifling the growth only in the case that China is the only country doing so. Western media often blames China’s currency manipulation for their problems. The media mostly reports currency manipulation gives China an unfair competitive edge and hits the global fragile recovery very hard.
They are talking as if they had done a good job in response to global economic downturn. They actually did a good for themselves but not for the world. United States floods its economy and of course the world economy with money. Its fiscal policy has pushed up the price of everything, especially the food prices hurting the poor the most.
Following the collapse of Leman Brothers, there has been a gigantic outflow of so-called “Bad Money” to developing countries. That money is responsible for the rise of Inflation and the risks of bubble bursting. What is America is doing? What we are doing is to rescue ourselves first so that we can safeguard the world economy, one might said. If so, what China is doing is no vice too.
The Great Recession stemmed in a large part from “Excessive Risk-Taking” in America’s banking system. Who created the problems first? Western media paints a very bad Picture of China. I’m largely dominated by Western thoughts. For some issues, I can’t agree more. Ones talk about China’s currency manipulation. But why they don’t talk about Thought Manipulation?
Let’s turn to Europe, most of European countries are implementing contractionary fiscal policy running counter to Principles of Keynes economics. They are cutting the spending as the world economy is badly in need of a strong, flexible circulation of Capital. According to Alan Greenspan, Greece default is inevitable.
Borrowing the money (debts) to compensate the debts is a good but a wise choice. Second bailout was done. Greece will face the same problem when the deadline is reached. Greece won’t default on its debts unless she receives a kind concession from France and Germany. They are using Greece to counter the effects of economic policies of United States and of China’s.
Checks and balances are to be met in a democratic country. There’s a serious problem of ad hominem. They are not attacking the problems; they just attack China. I’m not taking China side. I’m disappointed to see some people are telling neighbors to clean up the house while their one in a mess. Is that the backbone of Democracy? However, I’m not saying that China is doing the right thing.
China, Europe and United States are two sides of the same coin. They are fighting for their own gain. Asked if what my solution to that problem is, I’m speechless because the World is up and down with their successes too. It’s a No Brainer!!! What are your thoughts? Please share it with me.