Trade War: Obama’s Game of Chicken

International System of Units

  • Unit of length (meter) – The meter is the length of the path travelled by light in vacuum during a time interval of 1/299,792,458 of a second.
  • Unit of mass (kilogram) – The kilogram is the unit of mass; it is equal to the mass of the international prototype of the kilogram.
  • Unit of time (second) – The second is the duration of 9,192,631,770 periods of the radiation corresponding to the transition between the two hyperfine levels of the ground state of the cesium 133 atom.
  • Unit of electric current (ampere) – The ampere is that constant current which, if maintained in two straight parallel conductors of infinite length, of negligible circular cross-section, and placed 1 meter apart in vacuum, would produce between these conductors a force equal to 2 x 10-7 newton per meter of length.
  • Unit of thermodynamic temperature (kelvin) – The kelvin, unit of thermodynamic temperature, is the fraction 1/273.16 of the thermodynamic temperature of the triple point of water.  [K] = [°C] + 273.15.
  • Unit of amount of substance (mole) –  The mole is the amount of substance of a system which contains as many elementary entities as there are atoms in 0.012 kilogram of carbon 12; its symbol is “mol.”
  • Unit of luminous intensity (candela) – The candela is the luminous intensity, in a given direction, of a source that emits monochromatic radiation of frequency 540 x 1012 hertz and that has a radiant intensity in that direction of 1/683 watt per steradian.
  • Unit of account (dollar)?

Principle of Sound Money

The danger of Barack Obama’s weak-dollar policy is illustrated in the following parable taken from “The Theory of Money and Credit”:

Inflation works as long as the housewife thinks: “I need a new frying pan badly.  But prices are too high today; I shall wait until they drop again.”

The critical stage begins when the housewife thinks: “I don’t need a new frying pan today; I may need one in a year or two. But I’ll buy it today because it will be much more expensive later.”

Then the catastrophic end of the inflation is close.

In its last stage the housewife thinks: “I don’t need another table; I shall never need one. But it’s wiser to buy a table than keep these scraps of paper that the government calls money, one minute longer.”

Obama Declares War on American Trading Partners

Describing his plan for change at a security summit, Obama said, “Rebalancing of the world economy would be important.”

But Obama obviously didn’t think before he started talking change at the security summit, ironically, about how he was declaring a trade war. “We believe that part of that rebalancing involves making sure that currencies are tracking roughly the market and not giving any one country an advantage over the other.”

Obama’s trade war is playing out in a game of chicken he’s forcing on China. With the aid of his fellow Democrats, he’s recommending legislation to force China into making its money more expensive in currency markets compared to the dollar, which would effectively make American exports cheaper while raising the price of Chinese imports.

In response, China announced its own import tariffs that would more than double the price of American chicken.

Bitter or Better End

Highly unlikely but relevant to the change sought by a misguided theory for global markets to rebalance money and credit, Obama’s trade war could force China into redeeming its $1 trillion in American debt for the same value in chicken from the United States. The end result would indeed be catastrophic: a dollar worth only the paper it’s printed on and American chickens worth more than their weight in gold.

It’s time for a new president, who has the technical, tactical, interpersonal, and conceptual skills for leadership you can trust to solve problems in the global economy.

We have not yet begun to succeed — join me

References

Ludwig von Mises, The Theory of Money and Credit (Indianapolis: Liberty Fund, 1980).

Barack Obama, “Press Conference by the President at the Nuclear Security Summit,” The White House,” http://www.whitehouse.gov/the-press-office/press-conference-president-nuclear-security-summit

Judy Shelton, “Our One-Dollar Dilemma,” The Wall Street Journal, September 27, 2007, A17.

F.A. Hayek, “A Commodity Reserve Currency,” The Economic Journal, June-September 1943.

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10 thoughts on “Trade War: Obama’s Game of Chicken

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  6. Ronald: I think you need to get into the public forum and debate those fellow Republicans in some interviews like on the MSM networks and speak your mind like you have here, because it’s what we the people need to correct the ship.

    I, for one, would like to see this controversial issue opened up and asked some serious questions as to if there was a cover-up by both political parties back in 2008, after the Senate Bill SR 511 was voted on, but then 2.5 months later this law professor released this review and from the way it reads, the temptation to conceal this would have been greater than too expose this to the public for debate, and I think this is what created the mechanism for Obama and the Democrats to silence the Republicans and McCain on the issue of eligibility and is why we still to this day see both parties shy away from this issue with a vengeance, because both parties would have had to of conspired to cover this up and bribe to conceal this, and given the time line of when the Senate would have ruled on the SR 511 resolution for McCain and this law review coming out 2.5 months later, and it being so late in the campaign for either party to have a debate about this after they had ruled on it, it would have made both parties look incompetent to govern. Plus, Obama co-sponsored this bill that approved McCain then this law review comes out so this would have made Obama look incompetent as well, so you can see the contempt for wondering here over if there was a conspiracy born at this time of the review that is still going on today?

    Plus I think this is why we see a irrelevant government not willing to uphold any constitutional rule of law, not willing to challenge each other on the issues, and in the end we see a Congress that cannot find their way forward to move the USA forward. It has instead turned into a game of cat and mouse. And this 2008 eligibility cover-up might be why we see them not upholding any of our country’s constitutional rules.

    It’s time for an investigation by an independent research organization that can ask the hard questions in public. Because no one inside the government will ask these questions to find out the truth: they all are involved in this cover-up! And if this is not a conspiracy and cover-up, then the law professor that wrote these articles and review is an incompetent scholar and should be disbarred.

    Please review these and be amazed…

    http://papers.ssrn.com/sol3/papers.cfm?abstract-id=1157621

    http://articles.cnn.com/2011-04-20/opinion/chin.natural.born_1_natural-law-united-states-and-subject-citizenship-clause?_s=PM:OPINION

    • Dear Tony N,

      Thank you for writing!

      You need to know that I’m constantly at work to get our #Grey2012 presidential campaign further into the public forum so that we can indeed right our ship of state by doing what seems most likely to effect greater safety & happiness.

      Spread the word with everybody about #Grey2012 and join me on FreedomConnector: http://t.co/2s4Kdm7

      I am your most obedient servant,
      Ronald Grey

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  8. I am extremely impressed with your writing skills and also with the layout on your weblog. Is this a paid theme or did you customize it yourself? Either way keep up the nice quality writing, it’s rare to see a great blog like this one today..

    • Dear Adel,

      Thank you for your flattering comment!

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