Wikinvest Wire
Tuesday, May 17, 2005
Fading The Administration
John Snow has had a lot of air time in the last few days pounding the table on yuan revaluation. One thing about the Bush whitehouse is that every economic idea they have planned out and implemented has not worked out as they planned. I have to think that their belief here will consequences they are not expecting.
Subscribe to:
Post Comments (Atom)
2 comments:
I think saying a certain policy will have unexpected consequences is the worst type of offense that could be offered as a critique. Show me a policy, anywhere, under any leader, that didn't have unintended consequences.
It's an axiom of action that unintended consequences occur. To state it adds nothing to the discussion.
While I agree with your basic precept that China is hardly at fault in this situation (the finger can be pointed to previous administrations, as well as this one, at companies that are hell bent to outsource without contemplating the real costs, etc.), to blame them as Snow did is simplistic.
But the truth is China is to be blamed SOMEWHAT. The Yuan is badly in need of revaluation. The problem is that while this may spark improved US exports, it will close the door to cheap foreign financing, reversing the short term uptrend of the dollar.
Your blog is excellent. Sorry I took a heavy hand.
This post was a reiteration of a past posting. In that post I spelled out specifically what these unintended consequences might be. you can paste the following link to read the specifics.
http://randomroger.blogspot.com/2005/05/big-picture-for-week-of-may-8-2005.html
Post a Comment