The US continually fails to look into the mirror while pointing a finger at others.
With remarkable hypocrisy, the US Treasury Cites China, Japan, South Korea, Taiwan and Germany for policies it says threaten to damage U.S. and global economy.
Name and Shame
Please consider U.S. Chides Five Economic Powers Over Policies.
The Obama administration delivered a shot across the bow to Asia’s leading exporters and Germany for their economic policies and warned that a number of major economies around the globe could face intense pressure to engage in currency interventions to counter slow growth.
The U.S. Treasury Department, in its semiannual currency report to Congress, called out China, Japan, South Korea, Taiwan and Germany for relying on policies it says threaten to damage the U.S. and the global economy.
The countries are cited in a new name-and-shame list that can trigger sanctions against offending trade partners under fresh powers Congress granted last year to address economic policies that threaten U.S. industries.
Over the past two decades, for example, many U.S. officials have accused China of using an undervalued currency to bolster its manufacturing sector. A cheaper currency makes products cheaper overseas.
U.S. officials are increasingly concerned other countries aren’t doing enough to boost demand at home, relying too heavily on exports to bolster growth.
Counting on cheap currencies as a shortcut to boosting exports can create risks across the global economy, as nations fight to stay ahead of their competitors.
Please throw me a barf bag.
Except for Japan, the US was the first at QE and the first to slash and hold interest rates at ridiculous levels.
The US sponsored a global asset boom in emerging markets, sinking Brazil in the wake.
Now that the US is leading the Western world in recovery, it seeks to avoid damaging currency wars the US sponsored.
The musically-minded know what is coming up next.
Mike “Mish” Shedlock