Tuesday, November 23, 2004
This Is War!
De-linking our currency with China’s is bad economic policy.
For the above to make sense, it has to be remembered that trade is decidedly not war. Just as it is with individuals, when countries exchange with each other, they exchange what they do best in return for what they do least well. As Bastiat wrote, “In war, the stronger overcomes the weaker. In business, the stronger imparts strength to the weaker.”I totally disagree with Tamny. This is war, Economic War. We have the strongest military in the world, but economically we are vulnerable and "they" know it. It reminds me of the the time I "shot-the-moon" playing Hearts. Most everyone saves hearts and if they have the Ace or King of hearts assumes they have a stopper. However, I ran the table by being void hearts and long spades. It is a classic case of fighting the wrong war.