Tag: currency

Wall Street biggest friend in the Senate Charles Schumer doesn’t like the Trans-Pacific Partnership agreement, not so much for what’s in it but what isn’t, currency controls. Because the secret agreement being negotiated by the Obama administration doesn’t contain a clause that would protect currencies from being manipulated, Sen. Schumer is free to discuss it and why it’s important. In an interview and article at Huffington Post, he goes into the details about his concern and how currency manipulation hurts international trade and manufacturing.

A decade ago, or perhaps a little longer, New York Democratic Sen. Chuck Schumer had an epiphany during a visit to a Crucible Industries steel plant in Syracuse.

His realization has proved enduring, and a decade later, it threatens to derail the grand trade agenda of his fellow Democrat, President Barack Obama.

The lightning bolt that lit up Schumer’s imagination that day was delivered by managers at the specialty steel factory, who complained of a surprisingly simple and profound fact that few people ever consider if they don’t deal in international commodities. Steel fabricators in Schumer’s state were losing sales not because of any failing on their part, but because the government of China was using a trick of the international currency market to keep Chinese manufacturers’ goods as much as one-third cheaper.

The label for the practice is currency manipulation, and Schumer has harped on it ever since — in meetings with business leaders, on the Senate floor, in hearings, and with legislative offerings.

But what exactly is it, and why does does it matter? And why is it so important to many Democrats that if it’s not addressed in the ongoing push for massive new trade pacts, they’re willing to torpedo their own president’s agenda? [..]

The numbers of jobs lost from manipulation, and the flip-side potential gains from ending it, are what make it so important for many lawmakers, on both sides of the aisle. Republicans, such as Sens. Lindsey Graham (S.C.), Susan Collins (Maine) and Jeff Sessions (Ala.), have been strong proponents for legislation that would crack down on currency manipulation.

But for Democrats, many of whom support the goals Obama is striving for in his pursuit of the Trans-Pacific Partnership agreement with 11 Pacific Rim nations, and the Transatlantic Trade and Investment Partnership with Europe, currency manipulation is especially important because many suspect Obama will be unable to enforce the stronger labor and environmental standards called for in those trade deals. [..]

But in a sign of just how important currency manipulation is to several countries that would be included Trans-Pacific Partnership, Obama administration officials who testified on Capitol Hill last month almost universally warned that passing currency measures would be a trade-deal killer.

In the first three segments of this six part interview we’ve heard Jane D’Arista, author of The Evolution of U.S. Finance: Federal Reserve Monetary Policy: 1915-1935 and research associate with the Political Economy Research Institute (PERI), University of Massachusetts at Amherst, talk with Paul Jay about the end of the American consumerism as the driving ‘engine’ of the global economy, and about the decades long development of the offshoring of labor and the companies that have been doing that attempting to continue profiting by selling their goods back into a US market with steadily declining disposable income – – –  finally arriving at the point where massive government bailouts of the financial sector have been used to keep the illusion of a prosperous economy afloat at the expense of the average person, but that US workers wages are too low and there is no longer the cheap credit available to keep the system going that has been enabling people to live the ‘American Dream’ through debt, and why other countries are both unlikely and unwilling to take the place of the US as that importer of last resort that is needed to keep the illusion alive.

In this fourth segment D’Arista goes further in her conversation with Jay to give us the broad outlines of a solution she proposes to help reorganize the US and global economies – “an investment fund…in which you can attract, also, not only the savings that end up in central banks and government treasuries around the world, but the private savings, the important private savings, which are pension funds, not only in the US and other developed countries, but also in emerging market countries where pension funds are growing like crazy and they have no place to put them”, an alternative in a world where “politicians in the US, but certainly not only the US, in much of the world-are so entwined with the finance sector that the politics is pretty much as parasitical as the banks”

Part 1 of this interview is here.

Part 2 is here.

Part 3 is here.

All four parts are under the tag Jane D’Arista

So far in the first two segments of this six part interview we’ve heard Jane D’Arista, author of The Evolution of U.S. Finance: Federal Reserve Monetary Policy: 1915-1935 and research associate with the Political Economy Research Institute (PERI), University of Massachusetts at Amherst, talk with Paul Jay about the end of the American consumerism as the driving ‘engine’ of the global economy, and about the decades long development of the offshoring of labor and the companies that have been doing that attempting to continue profiting by selling their goods back into a US market with steadily declining disposable income, finally arriving at the point where massive government bailouts of the financial sector have been used to keep the illusion of a prosperous economy afloat at the expense of the average person.

In this third segment D’Arista goes further in her conversation with Jay to explain why and how the global economic system depends on the US as importer of last resort but that US workers wages are too low and there is no longer the cheap credit available to keep the system going that has been enabling people to live the ‘American Dream’ through debt, and why other countries are both unlikely and unwilling to take the place of the US as that importer of last resort that is needed to keep the illusion alive.

Part 1 of this interview is here.

Part 2 is here.

Yesterday in the first segment of this interview we heard Jane D’Arista, author of The Evolution of U.S. Finance: Federal Reserve Monetary Policy: 1915-1935 and research associate with the Political Economy Research Institute (PERI), University of Massachusetts at Amherst, talking with Paul Jay of The Real News Network about the fact that the global economy has lost the American consumer as the engine for the whole system.

Here in segment 2 D’Arista continues her conversation with Jay, talking about private capital looking for investment safety by abandoning the US Dollar to other things they think will better hold real value such as precious metals, oil, etc. and more about the history of how we got into the economic situation we are in today.

And about who benefits…

Part 1 of this interview is here.

Jane D’Arista is a research associate with the Political Economy Research Institute (PERI), University of Massachusetts, Amherst where she also co-founded an Economists’ Committee for Financial Reform called SAFER, i.e. stable, accountable, efficient & fair reform.

She is also a research associate at the Economic Policy Institute, “A nonpartisan think tank that seeks to broaden the public debate about strategies to achieve a prosperous and fair economy”.

Jane served as a staff economist for the Banking and Commerce Committees of the U.S. House of Representatives, as a principal analyst in the international division of the Congressional Budget Office. Representing Americans for Financial Reform, she has given Congressional testimony at financial services hearings. She has lectured at the Boston University School of Law, the University of Massachusetts at Amherst, the University of Utah and the New School University and writes and lectures internationally.

Her publications include The Evolution of U.S. Finance: Federal Reserve Monetary Policy : 1915-1935, a two-volume history of U.S. monetary policy and financial regulation.

Here Jane talks with Paul Jay of the Real News in the first segment of a six part interview, and says now that the US dollar as the reserve currency of all international transactions…

Mississippi Governor Haley Barbour was recently interviewed by the conservative Washington Times and stated his opinion on a variety of current events.  Barbour’s name has been floated as a potential 2012 Republican Presidential nominee and he appeals strongly to the party’s conservative base.  The most interesting portion of the interview focuses on federal government spending versus state government spending.  Barbour’s reply also reveals how quickly we have forgotten the problems of our past.  Those who advance a states’ rights agenda and hold up the Tenth Amendment as justification often forget the massive problems this country faced when we focused more on individual states at the expense of Washington, DC.  While placing more control in a centralized system of government has created some problems, they are nothing compared to way it was when the reverse was true.  

(Cross-posted from Daily Kos)

Our economic situation has been all over the news. Banks are failing, credit is contracting, the auto industry is crying for a bailout. Clearly, the U.S. economy has gotten derailed, and we’re now faced with the unenviable task of getting it back on track. The trouble is, we don’t know which track is the right track.

Or do we?

Suppose there exists a valid interpretation of economic forces and outcomes, one that explains our current situation, yet one that no one will acknowledge, even to knock down.

About 12 years ago I picked up Cities and the Wealth of Nations: Principles of Economic Life by Jane Jacobs (better known as the author of The Death and Life of Great American Cities) at a used bookstore in upstate New York. Jacobs wrote this book in 1983, in response the emergence of stagflation. As an informed and educated layperson, she examined economic history with a critical eye and an urbanist’s heart, looking for the laws that explained what was going on — which the economic theories of the time did not.