Bachmann warns us of the dangers of Chinese lasers.
(Reuters)
With an
initial vote ("a cloture vote on a motion to proceed") on Chinese currency manipulation scheduled in the Senate for Monday, Paul Krugman makes the case for the legislation in
typically ferocious Krugman fashion:
To get our trade deficit down, however, we need to make American products more competitive, which in practice means that we need the dollar’s value to fall in terms of other currencies. Yes, some people will shriek about “debasing” the dollar. But sensible policy makers have long known that sometimes a weaker currency means a stronger economy, and have acted on that knowledge. Switzerland, for example, has intervened massively to keep the franc from getting too strong against the euro. Israel has intervened even more forcefully to weaken the shekel.
The United States, given its special global role, can’t and shouldn’t be equally aggressive. But given our economy’s desperate need for more jobs, a weaker dollar is very much in our national interest — and we can and should take action against countries that are keeping their currencies undervalued, and thereby standing in the way of a much-needed decline in our trade deficit.
That, above all, means China. And none of the arguments against holding China accountable can stand serious scrutiny.
The politics of passing the bill remain unchanged: It is expected to get through the Senate easily and has substantial support in the House, but House Republican leadership does not want to bring it to a vote and President Obama does not want it passed. In fact, as Brian Beutler suggests, one reason for Republican leadership to hold a vote would be to put Obama in the difficult position of vetoing a popular bill or signing something he has concerns about.
Of course all of these concerns about Chinese currency manipulation pale next to House Intelligence Committee member Michele Bachmann's information that China is blinding American satellites with lasers.