"If only there was a policy solution that was simple, could happen even without a gridlocked Congress, and would actually move the dial on the problem of large trade deficits dragging on growth.
But there is! Allow the dollar to fall in value sufficiently to move the trade deficit much closer to balance. Currently the biggest impediment to this happening is the policy of major U.S. trading partners of managing the value of their currency to keep it from rising against the dollar"
a unilateral answer ??
enter the gagnon:
enter the gagnon:
"tax the income on manipulators holdings of U.S. financial assets.....Congress could draft the legislation authorizing the tax broadly, moreover, so that it could be applied to assets held by any country that manipulates its currency....The tax rate should start
at the normal statutory rate of 30 percent and could be increased at the discretion
of the U.S. Treasury secretary until
any government engaged in manipulation ceased the practice"
all this is now 9 months old
did we see much in the mass media ???
if we do nothing to close the trade gap
by ending forex fiddles when we can
who "here"
must be the cui bonos
if such an answer exists
----------------------
okay
it won't work unless the tax was say 300% of the interest earned
ie a confiscation
i suspect its still in china's interest to manipulate
even if the whole interest payment is taxed away
my guess the chinese could value these bonds at near zero
after all what are they valuing them at now ??
not raising the rmb
but other means exist
like a manipulation import tax
at the normal statutory rate of 30 percent and could be increased at the discretion
of the U.S. Treasury secretary until
any government engaged in manipulation ceased the practice"
all this is now 9 months old
did we see much in the mass media ???
if we do nothing to close the trade gap
by ending forex fiddles when we can
who "here"
must be the cui bonos
if such an answer exists
----------------------
okay
it won't work unless the tax was say 300% of the interest earned
ie a confiscation
i suspect its still in china's interest to manipulate
even if the whole interest payment is taxed away
my guess the chinese could value these bonds at near zero
after all what are they valuing them at now ??
not raising the rmb
but other means exist
like a manipulation import tax
