China: the Ultimate Protectionist

[Robert Oak]

A new report on China is one scary read.

Over on The Economic Populist is a post, China - The Ultimate Protectionist overviewing the report.

Beijing’s industrial policy was a contributing factor to the imbalances that led to the global financial crisis that affected the economies of rich and poor nations alike.

The report shows how China is creating a vicious cycle of taking our jobs, sending us exports from those jobs they just got plus lending us the money to buy those goods. This is part enabled the housing bubble.

The report shows how China pegs their currency to capture our industrial base, also is manipulating taxes and the report also states clearly China is not a free market economy.



http://www.economicpopulist.org/content/china-ultimate-protectionist

[ixion]

1. it is very easy to break that cycle...

we need to a) make things here again; and b) stop importing crap from China.

[blue97keet]

2. There had to be a way to recycle the massive trade deficit

and complete the vicious cycle, and it was tangled up mortgage securitization and cheap credit mess. The vicious cycle based on fraud had to collapse at some point, and it did exactly that. No surprise at all.