Comments for Someone Has to Tell Mitt Romney That He Supports a Lower Valued Dollar at http://www.cepr.net , comment 1 to 8 out of 8 comments http://www.cepr.net Sun, 26 May 2013 00:31:39 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/someone-has-to-tell-mitt-romney-that-he-supports-a-lower-valued-dollar#comment-16959 The answer is to compel China, Japan, Germany, Brazil and all the other export predators to import more goods and services, especially from the U.S. since they already have so many of our dollars. American consumers are fully up to the task of increasing their consumption, just as Keynes recommended and they proved during the depth of the Great Recession when Cash-for-Clunkers became a huge success and revived the auto industry. OTOH, driving down the value of the dollar has never succeeded politically, although you are correct that from an economic standpoint, it makes perfect sense. - Paul Tue, 19 Jun 2012 07:35:04 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/someone-has-to-tell-mitt-romney-that-he-supports-a-lower-valued-dollar#comment-16958 Mitt's just got the common schizoid condition. It allows people to say and think things like "corporations are people" and "slaves = 3/5ths of a human being". Which btw when you combine them means "corporations = 5/3rds of a slave". We are way out there. - fuller schmidt Tue, 19 Jun 2012 07:04:16 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/someone-has-to-tell-mitt-romney-that-he-supports-a-lower-valued-dollar#comment-16949 Paul, If China and Japan act to strengthen the dollar, then the right policy for the US is to let them? That seems a bit asymmetrical. If they have the capacity to weaken their currencies vs the US, then probably the US has the capacity to weaken the dollar. If China and Japan gain advantage by weakening their currencies, it may also be that the US could gain an advantage by weakening the dollar. I'm not sure why surrender would be the right policy for the US. In addition, to the extent that other countries have an advantage in exporting to the US, they will benefit from demand stimulus in the US. The US will loose exactly that part of its own demand stimulus that ends up benefiting US trade partners. If we are to stimulate demand, then reasonably that effort ought to be coupled with an effort to limit leakage through exports. - kharris Tue, 19 Jun 2012 03:15:40 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/someone-has-to-tell-mitt-romney-that-he-supports-a-lower-valued-dollar#comment-16945 The dollar is much stronger now against the euro because of the abject incompetence of the Germans, while the Japanese and Chinese are doing everything possible to strengthen the dollar against the yen and yuan in order to promote their exports. Dean needs to give up his fantasy of a lower dollar and embrace his inner Keynes: increase Americans' consumption which is the true driving force of the world economy. - Paul Tue, 19 Jun 2012 02:10:04 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/someone-has-to-tell-mitt-romney-that-he-supports-a-lower-valued-dollar#comment-16944 The efforts by China to link its currency to the dollar have great effects on U.S. economic sovereignty because manufactured consumer goods imported from China dominate the U.S. domestic market. The better analogy may be a comparison of today's fiat dollar to the 1920's gold standard dollar. Efforts of the federal government to stimulate the economy by putting more dollars into the hands of consumers are based on the notion that consumers will buy more goods and services. Such stimulus works directly and clearly when the consumers purchase goods manufactured in the U.S. But the effects of such stimulus are not so direct and clear when U.S. consumers purchase goods manufactured in China. The increase in manufacturing employment caused by increased demand for the purchased goods will take place in China and not in the U.S. This makes me wary of arguments that rest on the equivalence of stimulus in the 1950's when consumers purchased almost exclusively domestically manufactured goods and today when most manufactured goods purchased by U.S. consumers are imported primarily from China. My intuition is that we have adopted a trade policy with China that impairs our ability to stimulate our economy and impaired our economic sovereignty. - Ron Alley Tue, 19 Jun 2012 01:40:16 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/someone-has-to-tell-mitt-romney-that-he-supports-a-lower-valued-dollar#comment-16943 Funny to hear Romney complain throughout the primaries about China manipulating their currency and Obama trashing the dollar. - jerry Mon, 18 Jun 2012 23:38:52 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/someone-has-to-tell-mitt-romney-that-he-supports-a-lower-valued-dollar#comment-16942 "With Newt out of the race, Adelson showers millions on Mitt" http://www.lvrj.com/news/with-newt-out-of-the-race-adelson-showers-millions-on-mitt-159164405.html - fairleft Mon, 18 Jun 2012 19:48:46 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/someone-has-to-tell-mitt-romney-that-he-supports-a-lower-valued-dollar#comment-16939 Bishop Romney sure talks very tough against the communist unfair trade partner right now. Do people actually take it seriously given one of his largest backers, $25 billion casino operator from Macao, is having the most lucrative casino from China? Could Adelson's casinos in Macao cited for some violations and suspended temporarily? - James Mon, 18 Jun 2012 16:22:13 +0100