Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Obama and Romney on China: Who’s Lying?

ElectionOracle / US Presidential Election 2012 Sep 28, 2012 - 06:22 AM GMT

By: Ian_Fletcher

ElectionOracle

Mitt Romney and Barack Obama have both been upping the ante on international trade issues lately, especially America's big trade flashpoint, China.

Romney recently picked up an unintended reverse endorsement, of a sort, from the Club for Growth, a millionaires' club super PAC that would normally be a natural friend to the likes of him. Citing his threats to impose a tariff on China if that nation doesn't end its currency manipulation, they deemed him insufficiently enthusiastic about free trade and refused to endorse him. Perversely, this is good news from the point of view of trade reform, as it suggests that these consummate political insiders, who may know a thing or two we peasants don't, may just have tipped us off that his tough line on China trade is authentic.


One can only hope.

Obama, of course, isn't buying it, and has been calling Romney a phony on China trade because, supposedly, Romney was quite happy, during his business career at Bain Capital, to profit from off-shoring jobs there.

Indeed he was, but not to a greater extent than American industry as a whole during this period. His business career doesn't fit the "hero" or the "villain" narrative all that well either way.

Obama also filed a nominally large, if largely symbolic, trade case against China at the WTO concerning the auto industry.

Romney has called this “too little, too late,” and pointed out how much more Obama has had the chance to do—starting with designating China a currency manipulator—during his term in office.

So... which of them is lying?

Possibly, both are, as it's no secret that working class votes are up for grabs in key states like Ohio, which are trade sensitive. They may both be posturing at trying to help people who are only of interest to Washington every four years.

The upcoming presidential debates are going to be the last serious chance (especially for Romney, who can't announce policy initiatives) to put some serious meat on their rival claims to be trade hawks.

I am not getting my hopes up. I increasingly think they both regard the issue as a merely tactical one and disdain it as a serious question of economic strategy.

Meanwhile, the trade deficit's $500 billion a year leak in our economy continues, and people

wonder why the recovery is so sluggish.

Ian Fletcher is the author of the new book Free Trade Doesn’t Work: What Should Replace It and Why (USBIC, $24.95)  He is an Adjunct Fellow at the San Francisco office of the U.S. Business and Industry Council, a Washington think tank founded in 1933.  He was previously an economist in private practice, mostly serving hedge funds and private equity firms. He may be contacted at ian.fletcher@usbic.net.

© 2012 Copyright  Ian Fletcher - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in