During an interview today on CNN, Donald Trump said China's devaluation of the yuan would be "devastating" for the United States.
"They're just destroying us," Trump said.
"They keep devaluing their currency until they get it right. They're doing a big cut in the yuan, and that's going to be devastating for us."
"We have so much power over China," he told CNN. "China has gotten rich off of us. China has rebuilt itself with the money it's sucked out of the United States and the jobs that it's sucked out of the United States."
Trump has no appreciation for free trade and appears to have no understanding of comparative advantage. When it come to trade, Trump is a neanderthal. And I am not name calling here, see: The Hayekian Explanation for Why We Beat Out Neanderthals.
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| A neanderthal, via National Geographic. |
Not to mention the fact that the Fed has crazy devalued the USD. Fool. Let's hear it for Smoot-Hawley and the 2nd Great Depression!
ReplyDeleteYeah. This Trump character is giving me the creeps.
DeleteI'd argue that after decades of Chinese communist rule and with a destroyed economy, to open US markets to Chinese goods at slave wages, with little in the form of any property rights or environmental regulation, little to no protection of individual rights in China, etc. was a massive mistake.
ReplyDelete