Saturday, February 10, 2007

Top Democrats Understand Economics Better Than Clueless Bush Treasury Secretary

I've had so many post on the weak yen story lately so I thought there would be little more to say. But then I see that top Democrat Charles Rangel -infamous for his call to reinstate the military slavery ("the draft")- seem to understand the economics of currency markets better than clueless Bush Treasury Secretary Henry Paulsson. While I don't agree with everything he writes, it is still far better than what Paulsson said:

"In a letter sent to Paulson on Thursday, House Ways and Means Committee Chairman Charles Rangel, D-N.Y., and other powerful Democratic House members argued that the decline in the Japanese currency, which is sitting near a two-decade low on a trade-weighted basis, is the result of Japanese government policies -- namely artificially low interest rates and failure to stimulate consumer demand.

"These policies increase Japanese reliance on exports to stimulate economic growth," the letter said, likening Japan's tactics to Beijing's economic policies. "In a word, the evidence is clear that it is not a free market setting the value of the yen, but Japanese government policy as well."


Post a Comment

<< Home