China Bashing

This is a reprint from a column I write for a local newspaper. — JH

If you watched the last presidential debate between President Obama and Mitt Romney you got an earful about that evil bastion of trade manipulation, China. It seems that whenever a candidate for public office is desperate to attack [...]


Message From The Land Of Conventional Wisdom 1.2

Report from The Milken Institute Global Conference

The men in dark suits are everywhere. This is serious stuff. The topic on everyone’s mind is money. And there is lots of it. The guys that run pension funds for state, county, and local governments are here in force. The hedge funders, the investment advisers, the economists, [...]


The End of Sound Money and the Triumph of Crony Capitalism

This paper was the 2011 Henry Hazlitt Memorial Lecture given by David Stockman on March 12 at the Austrian Scholar’s Conference at the Mises Institute. With David’s permission I am republishing it here.


“In the post-TARP world, there remain [...]


Caterpillar And The Dollar

Caterpillar, Inc. came out with an outstanding sales report for the quarter ending January 31, 2011.  Sales are through the roof: up 48%. This caps off  nine straight rolling three-month periods of growth. Per region sales were:

Asia-Pacific:  January +38%, December + 47%, November +51%.

North America: January 58%+, December +48%, November +53%.



Obama Strikes Out Twice At G-20

In a follow-up to yesterday’s post on foreign exchange (“Hot Money, Gold, Foreign Exchange And The Fallout From QE“), the first day of the G-20 meeting in Seoul was not a good one for the Obama Administration and President Obama in particular. Mr. Obama was unable to conclude a free trade agreement with South Korea, [...]


Hot Money, Gold, Foreign Exchange And The Fallout From QE

What do “hot money,” gold, sovereign debt, foreign trade, and Germany and China all have in common? Everything. They are all lined up against the U.S. and our new quantitative easing (QE2). There is fallout related to quantitative easing, and the markets are reacting, from the Fed’s perspective, badly.

QE is just a way to flood the economy, [...]


Currency ‘Agreement’ Lasts 4 Days

TIm Geithner got an agreement at the G-20 meeting in Gyeongju, South Korea to “rebalance” world trade balances:

Under a deal hammered out this weekend at a meeting in Gyeongju, South Korea, finance ministers from big industrialized and developing economies agreed to try to maintain trade balances—which are both a reflection of and a determinant [...]


Things I Worry About: China, Geithner, and Tariff Wars

Q: Are we being harmed by a trade deficit? A: We’ve run one since 1983 yet the economy still has grown. (See table, below.)

Q: Can we compete in foreign trade? A: Yes. In 2009 we exported $1,554,718,000,000 of goods and services and imported $1,933,347,000,000.

Q: What will the appreciation of the yuan do to [...]


Morgan Stanley's Stephen Roach Fails Econ 101

By Jeff Harding.

In a Bloomberg interview today, Steven Roach, Chairman of Morgan Stanley Asia said:

China needs to boost investment in social security, private pensions, and insurance for unemployment and medical care, Roach said, to prompt its consumers to save less and buy more goods from overseas.


The Chinese Aren't As Dumb As the Fed Thought

Here’s the first serious salvo across the bow of the USS Greenback. The head of China’s central bank said the dollar ought to be replaced by another reserve currency. Here’s the gist of the article in the Wall Street Journal:

China called for the creation of a new currency to eventually replace the dollar as [...]