Monday, September 17, 2012


ACTUALLY...... Mitt Romney is talking tough again.  This time it's about China.  I'm sure he's been advised by many analysts that anything he does with China could be more than disastrous and possibly start a trade war that would hurt both American consumers and workers. Romney contends that he would take a much braver approach to what he calls 'abusive' Chinese trade practices, than President Obama.  He has repeatedly said "one of his first acts as President would be to formally label China a currency manipulator and slap punitive tariffs on Chinese exports to the U.S."  He said: "I want to make sure that if a nation cheats like China has cheated, we call them on the carpet and don't let it continue".

Romney's threat could damage the American economy.  I hope he's smart enough (?) to realize that China could retaliate by cutting purchases of U.S. debt and drive up our interest rates.  New tariffs on Chinese exports could increase prices for U.S. consumers.  His proposed actions would seriously damage our relations with the Chinese.  Daniel H, Rosen, an expert on Chinese economy said: "If a Romney presidency starts with aggressive new unilateral tariffs for China, then American firms from General Motors, to General Electric and Microsoft should all plan ahead for retaliatory treatment".

China's official Xinhau news agency said in a strongly worded English-language commentary  that "Romney's anti-China rhetoric, if converted into policy upon him assuming office, would trigger a catastrophic trade war and damage the already weak global economic recovery".

"It's rather ironic that a considerable portion of this China-battering politicians wealth was actually obtained by doing business with Chinese companies before he entered politics," Xinhua wrote.  "Such blaming-China-on-everything remarks are as false as they are foolish, for it has never been a myth that pushing up the value of China's currency would be of  litttle use to boost the chronically slack job market of the world's sole superpower, not to mention to magically turn the poor U.S. economic performance around."

Romney has repeatedly pledged, if elected, to get tougher with China on it's trade and currency practices, including to quickly declare China a currency manipulator.