The Congress, led by Democrats Charles Rangle (NY), and Sander Levi (MI) are blowing their ‘peace pipes’, calling for President Bush to pull the rug from under the Yuan, the Chinese economy, and its hard working people just days ahead of the Beijing Summer Olympics. Is this traditional democratic philosophy or merely political posturing during an ugly looking election year?
Many have blamed the Chinese Yuan for being undervalued and hurting the U.S. trade deficit. This economic nugget has been a well known fact for over a decade. Many insist that if the Yuan were to float freely, rather than being pegged to the U.S. Dollar, the U.S. economy would rise up. (A belated Democratic Easter?) A lot of that makes sense, but how did the U.S. and China get in to this predicament in the first place? Why suddenly such a ruckus in the 2008 general election home stretch? Anyone? We’ll try to explain…
Ironically, it was the Democratic administration of Bill Clinton circa 1994 that allowed the People’s Bank of China (PBOC) to peg the Yuan to the Dollar. Quite simply exchange rates and the global macro economic landscapes were set in motion.
Wal-Mart metamorphosed from David to Goliath over night, and the retailer based in the former Governor, now President’s state of Arkansas cheered loudly and lustily. See our article "The 2008 Animal Tug of War" in which the WMT connection is elaborated upon.
Robert Rubin, a Citigroup (C) recruit, was the Secretary of the Treasury: (http://en.wikipedia.org/wiki/Robert_Rubin). Another prominent Robert, this time Robert Reich was the Secretary of Labor at the time (http://en.wikipedia.org/wiki/Robert_Reich). We wonder if these two gentlemen would side with today's Dems in Congress and admit that their policies failed the American people?
To whom is the Democratic Congress truly sending their message of sudden failure and change: President Bush, China, or Hillary Clinton? In a Dow Jones article by John Godfrey released this afternoon the Dems state that China is "manipulating their currency". Did they learn of this 15 year old revelation only this morning? We’re not buying it. Are they admitting that the Clinton, Rubin, and Reich policies were a failure or do they just feel it's time for the rug to be pulled from under the feet of the Chinese people? Maybe there’s more to this story.
Should the Democratic Congress force the Chinese people to put on a crown of thorns just days ahead of the Olympic stage? Some believe success is a matter of 'timing meeting luck', but of late the Chinese have not been feeling successful or lucky. Perhaps there’s an ulterior motive we have not mentioned yet.. Is it possible that the Dems are finally admitting the two Clinton democratic administrations failed in regard to Yuan/Dollar monetary policy because they don't want another Clinton Presidency, specifically current Senator Hillary Clinton? Is traditional democratic doctrine pulling the rug out from under an already oppressed Chinese people by joining the slow-moving train of silent boycott? Would the majority Congress demand the same currency standards and apply the same measuring stick if China was on the African continent? Does traditional democratic philosophy call for hard working Chinese individuals to suffer pain in order to see Obama gain? You decide (we already have!).
Thanks for understanding the politics behind this 2008 Election Psychology of the Call.