Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search


Angie Pratt: If Bush Really Wanted To He Could

If Bush Really Wanted To He Could

By Angie Pratt

If George W. Bush was really interested in having China drop its peg to the US dollar he could force the issue. If George Bush actually wanted to see China's Yuan appreciate toward its true value he could simply institute a tariff against Chinese goods. In so doing he would:

* Gather monies to help offset the US deficit from the tariffs ... they are a source of income.

* Raise the price of Chinese goods and, in so doing, make American manufacturers more competitive.

* Reduce the trade gap with China.

* Give the Chinese a choice, remove the peg and float their currency or pay the US a price for its unilateral policy.

Why doesn't Bush do that? Is it ideology or reality that stops him? The truth of the matter is that he doesn't really want the Chinese to let their currency float under market conditions. You see the problem is if China does so, George W. Bush's house of cards caves in.

If the Chinese free their currency to float, the US dollar would immediate devaluate. In the process of this devaluation, Chinese goods in the US would immediate go up. Some analysts' estimates place the increase by as much as 40%. The result would be an immediate increase in inflation in America.

It is the absence of inflation that has allowed the fed to continue the money presses. In the presence of inflation, interest rates will go up. In the presence of inflation, George Bush's budget deficits are unsustainable. In the presence of inflation, you can guarantee a recession.

Of course, there is the other little matter of financing the Bush Administration's Wars.

And, of course, there is the other little problem ... the fact that China is in effect our landlord. We are into China for a bunch of money.

If China so chose, China could bury the United States, and the world, financially. Thus we can't really afford to make them angry. So ... we let them continue sucking at our neck while we make grand proclamations about saving the world from itself.

Boy howdy. Talking about the little Dutch boy with his finger in the dike ... or up his nose.


Written by Angie Pratt (

© Scoop Media

Top Scoops Headlines


Werewolf: Living With Rio’s Olympic Ruins

Mariana Cavalcanti Critics of the Olympic project can point a discernible pattern in the delivery of Olympics-related urban interventions: the belated but rushed inaugurations of faulty and/or unfinished infrastructures... More>>

Live Blog On Now: Open Source//Open Society Conference

The second annual Open Source Open Society Conference is a 2 day event taking place on 22-23 August 2016 at Michael Fowler Centre in Wellington… Scoop is hosting a live blog summarising the key points of this exciting conference. More>>



Gordon Campbell: On The Politicising Of The War On Drugs In Sport

It hasn’t been much fun at all to see how “war on drugs in sport” has become a proxy version of the Cold War, fixated on Russia. This weekend’s banning of the Russian long jumper Darya Klishina took that fixation to fresh extremes. More>>


Binoy Kampmark: Kevin Rudd’s Failed UN Secretary General Bid

Few sights are sadder in international diplomacy than seeing an aging figure desperate for honours. In a desperate effort to net them, he scurries around, cultivating, prodding, wishing to be noted. Finally, such an honour is netted, in all likelihood just to shut that overly keen individual up. More>>

Open Source / Open Society: The Scoop Foundation - An Open Model For NZ Media

Access to accurate, relevant and timely information is a crucial aspect of an open and transparent society. However, in our digital society information is in a state of flux with every aspect of its creation, delivery and consumption undergoing profound redefinition... More>>

Keeping Out The Vote: Gordon Campbell On The US Elections

I’ll focus here on just two ways that dis-enfranchisement is currently occurring in the US: (a) by the rigging of the boundary lines for voter districts and (b) by demanding elaborate photo IDs before people are allowed to cast their vote. More>>

Ramzy Baroud: Being Black Palestinian - Solidarity As A Welcome Pathology

It should come as no surprise that the loudest international solidarity that accompanied the continued spate of the killing of Black Americans comes from Palestine; that books have already been written and published by Palestinians about the plight of their Black brethren. In fact, that solidarity is mutual. More>>


Get More From Scoop

Top Scoops
Search Scoop  
Powered by Vodafone
NZ independent news