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Obama attacks other countries for his inflationist policies

31 Oct

US criticises Germany and China policies

Cars being transported in GermanyThe US Treasury has blamed Germany’s export-led growth model for dragging down eurozone
The US has criticised Germany’s economic policies, saying that its export-led growth model is hurting the eurozone and the wider global economy.
In its bi-annual report, the US Treasury said that domestic demand growth in Germany had been “anaemic”.
It also reiterated its view that the Chinese yuan continued to remain “significantly undervalued”.
The report has criticised Chinese policy before, but criticism of German economic policy is rarer.
“Germany’s anaemic pace of domestic demand growth and dependence on exports have hampered rebalancing at a time when many other euro-area countries have been under severe pressure to curb demand and compress imports in order to promote adjustment,” the Treasury said.
“The net result has been a deflationary bias for the euro area as well as for the world economy.”

‘Bit strange’

Germany, the eurozone’s largest economy, has been one of its key drivers of growth in recent years.

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It is better for eurozone to have a highly concentrated, efficient and skilled export powerhouse in Germany than not have any major engine of growth”

Tony NashIHS

Its importance to the 17-nation bloc has only increased since the development of the region’s debt crisis, which has affected other bigger economies such as Italy and Spain.
Germany has been one of Europe’s stronger economic performers and its exports prowess is seen as one of its key strengths.
It narrowly avoided recession earlier this year, but GDP in the second quarter of 2013 was driven up by demand from both consumers and businesses.
Analysts said that while Germany could benefit from boosting domestic demand, the criticism levelled at its policies was unfair.
“I think this is a bit strange,” Tony Nash, vice president at IHS, told the BBC. “The eurozone has to get growth from somewhere and Germany is the most likely place for that to happen.”
“And it is better for the eurozone to have a highly concentrated, efficient and skilled export powerhouse in Germany than not have any major engine of growth,” he added.

Yuan concerns

In recent years, the US and many other economies have alleged that China tries to keep the value of its currency artificially low.

US Dollar v Chinese Yuan

LAST UPDATED AT 31 OCT 2013, 05:50 ETUSD:CNY twelve month chart

$1 buys change %
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They say that, by doing so, Beijing gives an unfair advantage to its exporters, as an undervalued currency makes its good cheaper to foreign buyers.
For its part, China has been looking to loosen its grip on the currency as it looks to push for a more global role for the yuan.
But Beijing has maintained that a sudden and sharp appreciation in the value of the yuan will hurt its overall economy.
The yuan has risen nearly 12% against the US dollar since June 2010.
While the Treasury acknowledged that the yuan had been rising, it said the appreciation was “not as fast or by as much as is needed”.
“On the other hand, the evidence that China has resumed large-scale purchases of foreign exchange this year, despite having accumulated reserves that are more than sufficient by any measure, is suggestive of actions that are impeding market determination and a currency that is significantly undervalued,” it added.
However, the report did not label China as a currency manipulator.

More on This Story

Obamanoids Shrugged!

12 Sep

Maureen Dowd summed up Obama’s week: “Amateur hour started when Obama dithered on Syria and failed to explain the stakes there. It escalated last August with a slip by the methodical wordsmith about “a red line for us” — which the president and Kerry later tried to blur as the world’s red line, except the world was averting its eyes.”

Dana Milbank described Obama’s foreign policy by gaffe (the Biden effect?): “Kerry can be forgiven for being at odds with the president. The president, in the space of his 16-minute address, was often at odds with himself. He spent the first 12 minutes arguing for the merits of striking Syria — and then delivered the news that he was putting military action on hold.”

Bill Maher: “Sorry, Barry, you didn’t make the sale with me. Real Time comes back Friday night, I still like my argument better. But nice suit.”

The usual commutard faux radicals and peacenik poseurs of Hollywood (John Cusak gloriously excepted) have been so silent BuzzFeed assumed they must have been abducted.

And David Simon, the grumpy, self-satisfied, rigid, ever unhappy while wildly successful (basically the Bill Maher of the east coast) writer-creator of Treme and Wired, was defending Obama’s surveillance state and NSA abuses last month, but has gone silent during the Syria befuddlement.  (We put his blog in our blogroll over there on the right hand side — but you will have to go way down to the bottom to find it, because he hasn’t posted a peep in weeks!)

One more person not working under Obamanomics – Beyonce wasn’t singing yesterday!

22 Jan

VIDEO Beyonce mimes anthem
Beyoncé did not sing the national anthem live at President Obama’s inauguration.
Millions of viewers around the world were stunned by the singer’s spectacular rendition of the anthem but The Times has learnt that she was lip-syncing to a pre-recorded backing track.
A spokeswoman for the Marine Corp Band Kristen DuBois said it was standard procedure to record a backing track and Beyoncé decided shortly before her performance to rely on the studio version rather than risk singing it live on the Capitol.
Yo Yo Ma pre-recorded his cello performance in 2008 because the cold weather and wind may have…