Trump is not essentially wrong on China

[BobK71]

Not that I'm a Trump supporter in general, but this media blitz in economic commentary against Trump's views on this issue is misleading.

It's true, as maintained by Trump's critics, that China is no longer suppressing the yuan's value, but actually trying to prop it up.  But this doesn't change the fact that the yuan is still massively under-valued in terms of purchasing power.

(It may seem paradoxical for a currency to be under-valued in purchasing power but over-valued in the foreign exchange markets.  The reasons are complex but this is quite common.  Your dollars go much farther in Mexico, even though the peso is still dropping against the dollar in the forex markets, most of the time.)

So the important point that a cheap yuan is robbing Americans of stable, middle-class jobs still holds.  Whether the cheap yuan is caused by the Chinese government or the Fed (taking a tightening stance), or the "exorbitant privilege" of the dollar in general, doesn't make a difference to the Average American who is basically obsolete in a global economy and a world of artificially high exchange rates for "reserve" currencies.

IMO this hollowing out of the US middle class is one of the "easy" routes by which the public might understand how the elites extract wealth from the rest of society.  Trump deserves credit for bringing up this issue, whatever effectiveness his promised policy might have.

My guess is that the media blitz against Trump's narrative may be a sign of how scared the elites are.

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[Iseecookies]

The biggest issue is what you define to be the middle class,Hilary Clinton considers herself middle class and most every campaign is about supporting the middle class. Yet the divide between rich and poor grows throwing the middle class into one or the other.
The middle class experiment failed and is used as a prop,no one ever defines it out of risk of losing votes.

China manipulates its currency for its own gain and manipulating the States is one of their goals,since they are so highly invested in it as well.

As for Trump he is just tapping into the every day mans rational on how they are being kept under.

[pitham1]

Forget Trump's views on China, think about China's views on trumps.
China is using Trump to put down democracy. 

http://nymag.com/daily/intelligencer/2016/03/china-uses-trump-in-anti-democracy-propaganda.html

[Iseecookies]

Trump can not be wrong about Trumpisms,pretty sure he has coined that somewhere.

This election is a freak show now and Clinton will have to match the energy or be trampled on.

[gentlemand]

American middle class seems to be a different proposition compared to elsewhere.

In britain middle class has rather more pretentious connotations.

[Olaf]

Trump can not be wrong about Trumpisms,pretty sure he has coined that somewhere.

This election is a freak show now and Clinton will have to match the energy or be trampled on.

That "Trumpism" is going to lead us to ww3.

The entire election outside from the bernie is the only viable option in my eyes at this point. But I rather have hilary over trump any day despite her lying out of her ass.

[mixan]

Trump is really destroying America's image instead of helping it. Other nations, powerful nations, are really now seeing America as the cocky younger brother of the world now. Nobody likes those people.

[BitsandBites]

Trump is giving America a horrible reputation. I can't believe he has so much attention on him.
Concerning what he said about China, indeed is right. The Yuan is very undervalued in purchasing power and is affecting the US economy.
However, I can't see Trump fixing this.

[Pab]

If you talk about yuan that i think you see what rates are in Chna what in USA and Eurozone
But choose Trump,he has full support of mr Putin,after you will know what is this real crisis and crash
maybe even you will have to fight in USArmy

[techgeek]

Dont get me wrong, Trump is a great business person.

But on a world wide scale esp the sensitive issue with russia and the the whole nato situation, I dont think hes the great role for that.

He also mentioned he only took a small loan of a "1 million dollars" from his dad. If he thinks thats a small loan then you got a serious problem.

[cameltoe]

Trump is wrong on 90% of everything sorry to say 

[JavaLove]

Dont get me wrong, Trump is a great business person.

But on a world wide scale esp the sensitive issue with russia and the the whole nato situation, I dont think hes the great role for that.

He also mentioned he only took a small loan of a "1 million dollars" from his dad. If he thinks thats a small loan then you got a serious problem.

I actually believe he is. The man is probably the most intelligent and most strategic candidate running right now.

When he announced that China was ripping us off, which it is, no one cared for the facts but instead called him a racist when, in fact, Trump is the least racist person up there.

Truth be told, China has stolen all our jobs and is totally manipulating their currency. It's not an opinion; it's a fact -- which can't be racist. The media has portrayed him to be this radical candidate who can only criticize another race yet he's quite the opposite. He loves the diversity of the world, but believes in competition. Something we've been missing for eight years and really up until Reagan.

Finally, you mentioned the "small loan" I don't agree with him either that it was "small" however I believe he's just adjusting it proportionally. Think, his father was worth $200 million or so, thus $1 million is actually small in those terms. Plus, he took that $1 million and turned it into over $4 billion.

Point is, the man is not some stupid racist guy. If anything, that's a democrat, however he's the smartest and most strategic candidate running.

Don't mean to get off topic/political just trying to support my argument  

[bit101]

Trump is wrong on 90% of everything sorry to say 

well i pretty much agree with you

just hope Trump will find a way to work things out for the US of A & world @ large

[Kingno.1]

If you take Mr. Trump’s comments at face value, as president he would try to renegotiate a complex set of ties that has pulled hundreds of millions of Chinese out of dire poverty, made a wide range of goods available to American consumers at more affordable prices and contributed to the decline of American manufacturing.

[BobK71]

If you take Mr. Trump’s comments at face value, as president he would try to renegotiate a complex set of ties that has pulled hundreds of millions of Chinese out of dire poverty, made a wide range of goods available to American consumers at more affordable prices and contributed to the decline of American manufacturing.

The simple act of keeping the yuan cheap (by buying dollars from Chinese exporters with newly printed yuan) for about the last 20 years, by China, was what unleashed the whole complex of events, including what you describe above, but also including propping up the value of the dollar and Treasuries, which allowed American politicians and bankers to benefit from issuing debt and other assets.

But this elite-friendly phenomenon also led to the "global savings glut" (which is really a euphemism for the world having too much printed paper wealth and not enough real goods and services to match them,) chasing yield by investors, and the 2008 financial crisis.

Also, many Westerners quickly became uncompetitive on price.  Those who still have jobs are working in unstable lines of work with uncertain demand (thanks again to the distortions created by inequality due to the massively created paper claims to wealth -- more and more people are working on luxuries for the lucky, that demand can dry up quickly if the lucky people feel any pinch and cut back.)

I would agree that, even with totally free exchange rates, some kind of adjustment would be needed to accommodate the rise of China -- Westerners would still have to move to higher end jobs and get more educated, etc.  But the market-driven process would have been slower, more manageable and more stable.  (Chinese trade surplus would naturally have caused a rise of the yuan, which would have made Chinese goods more expensive, and slow down the whole process, etc.)

[Pab]

Trump need to consider that he is runing on Chinise battery
he has simple nationalist campaigne America for Americans
mr Trump you are emigrant your father mother came to America from some other place

[Laosai]

Not that I'm a Trump supporter in general, but this media blitz in economic commentary against Trump's views on this issue is misleading.

It's true, as maintained by Trump's critics, that China is no longer suppressing the yuan's value, but actually trying to prop it up.  But this doesn't change the fact that the yuan is still massively under-valued in terms of purchasing power.

(It may seem paradoxical for a currency to be under-valued in purchasing power but over-valued in the foreign exchange markets.  The reasons are complex but this is quite common.  Your dollars go much farther in Mexico, even though the peso is still dropping against the dollar in the forex markets, most of the time.)

So the important point that a cheap yuan is robbing Americans of stable, middle-class jobs still holds.  Whether the cheap yuan is caused by the Chinese government or the Fed (taking a tightening stance), or the "exorbitant privilege" of the dollar in general, doesn't make a difference to the Average American who is basically obsolete in a global economy and a world of artificially high exchange rates for "reserve" currencies.

IMO this hollowing out of the US middle class is one of the "easy" routes by which the public might understand how the elites extract wealth from the rest of society.  Trump deserves credit for bringing up this issue, whatever effectiveness his promised policy might have.

My guess is that the media blitz against Trump's narrative may be a sign of how scared the elites are.

And the good solution to that is?

That's right, just destroy all the traders. They're the one playing with under valued currency in order to make profits.

[West man]

Forget Trump's views on China, think about China's views on trumps.
China is using Trump to put down democracy. 

http://nymag.com/daily/intelligencer/2016/03/china-uses-trump-in-anti-democracy-propaganda.html

Well that could lead to is China becoming a more strong nation and possibly them joining with North Korea and causing nuclear war if Trump wins. Another iteration of the Cold War will be upon the US again. History tends to repeat itself. There is no fighting against it.