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130 Congressmen Join Paul Krugman's Campaign To Rid The World Of Chinese CNY Manipulation Once And For All, Consequences Be Damned

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Mon, 03/15/2010 - 17:45 | 266328 Caviar Emptor
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In today's Alarming News:

"Net foreign purchases of long-term securities totaled $19.1 billion in January, as net purchases of private corporate bonds fell by $24.8 billion, the biggest drop on record."

The focus has been on Treasuries, this kind of got lost in the shuffle, but signals a potential credit market inflection point.

Mon, 03/15/2010 - 17:47 | 266332 cougar_w
cougar_w's picture

[lymph?] Eww. For some reason that is way TMI.

China is going to rattle their sabers but there's not much they can do, being bound as they are to the global economy. And the Taiwan reaction just makes them look like hayseeds living in the past; guys, either put it behind you or it's still 1965 and you got Mao and mass graves. Now choose. Hint: WalMart doesn't have an aisle full of Mao bobble-head dolls. Word.

Gonna be a fun summer for China. Oh yeah.

Mon, 03/15/2010 - 17:58 | 266346 BlackBeard
BlackBeard's picture

yeah you tell an authoritarian regime what to do Krugman! you tell em! ooohh naivite....


Short Economic Nobel prize winners.

Mon, 03/15/2010 - 18:30 | 266421 monmick
monmick's picture

Like my father used to say to me; too much education, not enough common sense (usually followed by a slap upside the head)...

Mon, 03/15/2010 - 17:55 | 266347 lsbumblebee
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I thought Krugman was some sort of liberal. He sounds like a "America can do no wrong love it or leave it" Republican to me.

Mon, 03/15/2010 - 17:59 | 266357 docj
docj's picture

There's a liberal Democrat in the White House.  So in Paulie WallNutz eyes America can indeed do no wrong.

Mon, 03/15/2010 - 18:02 | 266365 lsbumblebee
lsbumblebee's picture

Further blurring of the lines I guess.

Tue, 03/16/2010 - 01:03 | 266861 AnonymousAnarchist
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Paul is a statist, plain and simple. Sometimes it's hard to tell which team a statist plays for but they're all pretty much the same.

Bill Anderson has a blog dedicated to PK called Krugman in Wonderland.

Mon, 03/15/2010 - 17:59 | 266356 Ragnarok
Ragnarok's picture

Let the pissing contest begin in earnest.


China should just sell a couple treasuries and purchase some gold on the open market, that ought to shut'em up for a while.

Mon, 03/15/2010 - 18:01 | 266360 faustian bargain
faustian bargain's picture

I wonder if they'll skip right to the main event. Maybe it won't happen, but I imagine it would be a spectacle.

Mon, 03/15/2010 - 18:06 | 266372 Ragnarok
Ragnarok's picture

China's not ready yet, but the game of chicken has already started.

Mon, 03/15/2010 - 18:19 | 266392 tmosley
tmosley's picture

I wonder if the Chinese have an equivalent proverb to "Give them enough rope, and let them hang themselves".

If they cut the peg, the US will collapse.  The length of time that it takes will be measured not in years or months, but hours or days (possibly even minutes).

Mon, 03/15/2010 - 23:49 | 266802 Absinthe Minded
Absinthe Minded's picture

It's really sad, us blaming them for our failure to rein in our debt crisis. I love my country but it just keeps getting further and further away from what our founding fathers vision of our country was supposed to be. We are really in trouble but nobody sees it. This Healthcare reform is just a ludacrious vision of Obama and Pelosi. If it passes things will change for the worse. Look at Mass. they are living it now, companies can't handle the price of reform. I have a really good plan where I work, I'm lucky and I realize it, but what will happen under this reform? Will they say," Screw it let's just pay the $3000 penalty and hand the coverage to the government?" Here we are on the brink of losing our AAA rating and they want to take out another trillion dollar mortgage for HC. Oh yeah, I suppose if they bribe S&P and Moody's well enough we'll keep our rating. How long before countries realize the ratings are a farce? First sign of SHTF I am cashing out my 401K for gold, silver, ammo and seeds. God help us all.

Tue, 03/16/2010 - 01:24 | 266873 tomdub_1024
tomdub_1024's picture

I already done cashed...just sayin'...:) Sucks to miss out on the bouncing mortified feline, though...meh...I lost that attachment long ago.

Tue, 03/16/2010 - 09:30 | 267019 Hulk
Hulk's picture

Problem is, Absinthe Minded, by the time we realize that its time to cash in the 401k's or buy gold, it will be too late.

$401k's will either be decimated or locked down by Uncle Sam

and Gold\Silver will not be available.

The time to make the cash out and buy decisions is now

Mon, 03/15/2010 - 18:04 | 266367 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

DAMN YOU KRUGMAN!!!!!!!!!!!!!!!!!!!!!!!

Mon, 03/15/2010 - 18:04 | 266369 Ragnarok
Ragnarok's picture

The only feathers this gov't hasn't ruffled lately is unions and Palestinians.  Why can't we get and ideologue who's sole passion is shrinking gov't.

Mon, 03/15/2010 - 18:07 | 266375 Postal
Postal's picture

Wait, I'm confused (I'm confused a lot now that I've found ZH). Didn't China just sell a barge full of Treasuries because we pissed them off with the whole Taiwan arms deal thing? Why are we continuing to poke them with a stick?

Mon, 03/15/2010 - 18:19 | 266393 faustian bargain
faustian bargain's picture

Maybe the PTB are looking for a distraction/scapegoat, anywhere and everywhere but here in the US.

"It's Not Our Fault!!!"

Mon, 03/15/2010 - 18:07 | 266376 Millivanilli
Millivanilli's picture

Krugman is a dingleberry.

Mon, 03/15/2010 - 18:09 | 266382 THE DORK OF CORK
THE DORK OF CORK's picture

Every time I zero hedge a article about China I get these Chinese women want love advertisements - I beginning to think that there is a Chinese covert operation to love bomb zero hedgers with honey traps so that they can spread their Manchurian candidates amongst the ether of cyberspace.

Mon, 03/15/2010 - 18:16 | 266387 faustian bargain
faustian bargain's picture

...spread their Manchurian candidates...that sounds naughty.

Mon, 03/15/2010 - 22:21 | 266723 THE DORK OF CORK
THE DORK OF CORK's picture

Another thought has entered my little brain but I won't go there now since I know this is a family show

Mon, 03/15/2010 - 18:13 | 266385 Leo Kolivakis
Leo Kolivakis's picture

Krugman is an excellent economist but on this issue, he is patently wrong. I  wrote about The Chinese Disconnect back in October and took issue with his position then. He still carries the same silly views on China. Oh well, after Peddling Prosperity and Pop Economics, he hasn't really produced anything interesting, and is starting to repeat himself ad nauseum.

Mon, 03/15/2010 - 18:21 | 266397 tmosley
tmosley's picture

Krugman is a lot of things, but an excellent economist isn't one of them.

Mon, 03/15/2010 - 18:26 | 266405 Leo Kolivakis
Leo Kolivakis's picture

C'mon, he did get the Nobel Prize, even if it is in the fake, charlatan, pseudo science of economics. Après le Prix Nobel, le déluge!

Mon, 03/15/2010 - 19:07 | 266420 THE DORK OF CORK
THE DORK OF CORK's picture

 Leo he just said that 2005 was a normal economic environment - I know the only sane people in this crazy world are mad people but but I still think he should start taking his medication again.

Then again I agree with him for once - parhaps I need to increase my dosage

Mon, 03/15/2010 - 21:02 | 266627 suteibu
suteibu's picture

Yeah, and so did Obama.  The irony is, Krugman is advocating for Peace Prize winner Obama to start an open trade war with China.  That is sure to hurt Japan and S Korea.


Krugman is the same guy who said the reason the Keynesian solution didn't work in Japan in the 90s is because they didn't print more money. 

He recommends passing a law requiring the central bank to pursue at least 4 percent inflation rates for 15 years (Krugman 1998)“  http://mises.org/story/1099

Mon, 03/15/2010 - 21:36 | 266660 Vol Addict
Vol Addict's picture

Does anyone, including celeb economists, wonder whether pissing off the guy that loans you all the money is a good idea. BTW, for me, when Al Gore won a Nobel Prize it became the "Participation Ribbon" from Meet The Fockers.

Mon, 03/15/2010 - 19:23 | 266487 zezorro
zezorro's picture

He's not wrong. He's doing his job: propaganda. Not to mix with science, other department.

Mon, 03/15/2010 - 20:05 | 266542 Overpowered By Funk
Overpowered By Funk's picture

Leo, you are one funny SOB.

Mon, 03/15/2010 - 18:29 | 266416 buzzsaw99
buzzsaw99's picture

Earth to Krugman: The trade war's over, the usa lost. Epic fail.

Mon, 03/15/2010 - 18:39 | 266431 Racer
Racer's picture

Chinese manipulation... pot meet kettle


ROFLMAO, rofl, rofl, rofl, sorry big stitch in my side, can't stop....rofl, rofl, rofl......rofl....lol, lol,,,,,, lol lol, argh my sides hurt..... rofl, rofl, rofl

rofl, rofl, rofl, sorry big stitch in my side, can't stop....rofl, rofl, rofl......rofl....lol, lol,,,,,, lol lol, argh my sides hurt..... rofl, rofl, rofl

rofl, rofl, rofl, sorry big stitch in my side, can't stop....rofl, rofl, rofl......rofl....lol, lol,,,,,, lol lol, argh my sides hurt..... rofl, rofl, rofl

rofl, rofl, rofl, sorry big stitch in my side, can't stop....rofl, rofl, rofl......rofl....lol, lol,,,,,, lol lol, argh my sides hurt..... rofl, rofl, rofl


no, the pain from laughing.... oh this is soooo painful..

rofl, rofl, rofl, sorry big stitch in my side, can't stop....rofl, rofl, rofl......rofl....lol, lol,,,,,, lol lol, argh my sides hurt..... rofl, rofl, rofl

rofl, rofl, rofl, sorry big stitch in my side, can't stop....rofl, rofl, rofl......rofl....lol, lol,,,,,, lol lol, argh my sides hurt..... rofl, rofl, rofl





Mon, 03/15/2010 - 22:08 | 266704 Master Bates
Master Bates's picture

You probably could have put that once or twice and had the same message.

Ten is just annoying, buddy.

Mon, 03/15/2010 - 18:44 | 266432 AR15AU
AR15AU's picture

If China made cars (for export), you know there would be some government goon flooring the accelerator down I-5 for a photo op right now.

Grab your popcorn...  Should be a fun night on CNBC.

Tue, 03/16/2010 - 01:55 | 266888 Big Red
Big Red's picture

thanks, I needed that.

(Also, if not gov't goon, someone in a lot of debt, a union-related goon, a publicity-seeker, a dumb-ass driver (which also includes many who just can't do anything manual, anything), or some combo of the aforementioned...)

Mon, 03/15/2010 - 18:55 | 266449 bc0203
bc0203's picture

Can't WAIT to see this one play out, if Geithner is actually stupid enough to act upon it.

Mon, 03/15/2010 - 19:12 | 266475 Howard_Beale
Howard_Beale's picture

Timmay is a eunoch. Nothing will happen.

Mon, 03/15/2010 - 19:29 | 266496 deadhead
deadhead's picture

Howard...while "eunoch" is clearly an accurate description, I would respectfully request that you join me in using "phucknut" as the universally accepted descriptor of the current U.S. Treasury Secretary.


In the event that your favorite bank's guy ever gets the Treasury job, I will have to come up with a new and improved version of "phucknut"....I am confident that I could be successful.




Mon, 03/15/2010 - 20:54 | 266616 Howard_Beale
Howard_Beale's picture

Yes, phucknut from now on! I've used it several times today, although hyphenated. Thanks for the clarification and as Miles called it, a new ZH lexicon!

Mon, 03/15/2010 - 18:55 | 266450 RSDallas
RSDallas's picture

We have known forever the potential consequences of our economic decisions.  It seems we are now learning and living what it means by "to much government involvement".  China didn't become the WORLDS manufacturing facility overnight or on their own.  There is nothing new here.  Economist like Krugman have always been wong about the economic decisions we, as a Nation have pursued.  Now that the chickens have come home to roost, (and they are not interested in going back home this time) Krugman and others cry "FOUL PLAY".  It's always "somebody else's" fault within the Socialist American Economic society that Krugman and others live in and in the US Government. 

Did China get the US in this mess or the decisions from our government on our trade policies?  Is China playing the game by all of the rules?  Probably not.  Does anybody play by all of the rules?  No, No, No.  Folks, every Nation has its own agenda. 

It's funny that you never heard a peep from these fools during the time we were outsourcing everything we stand for out of this country and rolling in the money.   I'm just thankful that this financial meltdown has awoken at least some of our society.  Let's just hope enough people wake up to actually make a change in this great Nation. 

Well Kramer just went negative on the residential real estate bail out and preached that it would be better for some to just go broke.  Maybe he just woke up.  Maybe there is hope.

Mon, 03/15/2010 - 19:14 | 266477 Howard_Beale
Howard_Beale's picture

"Economist like Krugman have always been wong"...

A little Keynesian slip there in your typo?

Mon, 03/15/2010 - 19:47 | 266513 RSDallas
RSDallas's picture

Ha Ha.  I thought I saw a puddy cat.

Mon, 03/15/2010 - 18:58 | 266455 svendthrift
svendthrift's picture

I support the movement to bring the cost of Chinese goods (and others) in line with American costs. I support an industrial plan.

Have any of you been in America lately? Here, I speak of non-financial centers like Ohio, Penn etc. Or any city in the South. Economic carnage. Under/unemployed peasants limping around Walmart, sucking on meth pipes and generally accomplishing sweet frak all with their lives. There is no opportunity. There is no path of social advancement. There is a vast underclass with no hope for the future. What we're doing simply isn't working. We can not have a society of burger flippers and "account representatives" at Citi. It isn't working.

America needs to reindustrialize. Part of this is slitting Keynes's throat once and for all. Another is recognizing that the theory of comparative advantage is not relevant given present monetary and trade arrangements.



Mon, 03/15/2010 - 19:00 | 266461 Catullus
Catullus's picture

Goddamnit.  It's even bad Keynesianism.  The guy is a just a mercantilist loser. 

Hey Dr. Krugman, somewhere Richard Nixon just got a hard-on for your article.  That's right, Richard Nixon.  Read it.  Love it.  You're nothing more than a Nixonian Republican. 

Mon, 03/15/2010 - 19:11 | 266470 Howard_Beale
Howard_Beale's picture

From Jeff Dunham's puppet Achmed the Dead Terrorist to Krugman's ear:


I Kill You!


Mon, 03/15/2010 - 19:22 | 266484 carbonmutant
carbonmutant's picture

"We have just received a copy of a letter signed by 130 Congressmen, and sent to Tim Geithner and Gary Locke, urging the Treasury to immediately address the "growing problems associated with China's continued currency manipulation"

I'm not sure the Chinese take Mr. Geithner seriously.


Tue, 03/16/2010 - 06:53 | 266973 MarketTruth
MarketTruth's picture

Geithner literally was laughed at by Chinese students. In China, your education ranking is VERY important (not just in level of education but WHERE you graduated within your class), as employers seek the best and brightest. They care more about your knowledge and personal reputation versus net worth or that made-to-measure suit you may be wearing.

And remember, China literally kills banksters while in the USA they roam free without fear of jail time or any repercussions for their massive fraud. Have personally spent time in China....


Tue, 03/16/2010 - 09:06 | 267001 Postal
Postal's picture

Are you suggesting that we place something of higher priority than American Idol?

Mon, 03/15/2010 - 19:29 | 266494 GlassHammer
GlassHammer's picture

Krugman is a tard 90% of the time but every now and then he makes sense.

This is not that 10% though.

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