This all makes sense. But the underlying forces are the intelligence and dynamisms of the Chinese and on the other hand the ability to print the medium of international exchange so that the printer doesn't need to earn his keep. The forces that would have enabled the US manufacturing industry to compete, via a depreciation in the US dollar were unable to manifest. This is ultimately the payback for Nixon's abandonment of the gold standard.
I come to many of the same conclusions in my essay on the deal while also highlighting China’s dominance in steel as a reason American steelmakers need to embrace international cooperation instead of avoiding it: https://open.substack.com/pub/thestupideconomy/p/a-protectionist-mountain-out-of-a?r=i7v1h&utm_medium=ios
Thanks for this, particularly the China factor in the equation.
This all makes sense. But the underlying forces are the intelligence and dynamisms of the Chinese and on the other hand the ability to print the medium of international exchange so that the printer doesn't need to earn his keep. The forces that would have enabled the US manufacturing industry to compete, via a depreciation in the US dollar were unable to manifest. This is ultimately the payback for Nixon's abandonment of the gold standard.
I disagree. In my view, currency rates are just one facet among very many in a complex world, one in which currency rates are as much effect as cause.