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For more now on the economy and what may be what He styles they mortal threat.
Including China this country's largest foreign creditor.
We're joined by Wall Street legend Louis -- former Morgan Stanley managing director chairman of -- institute.
And He was also appointed by President Reagan to the US gold commission.
And this show or as I noted.
Earlier it is we have the distinction of having to members of the Reagan -- commission congressman Ron Paul.
And what was slam on the show tonight and it's great to have you work flow negative let's start with your statements in your article in which you refer to.
China as that our perspective mortal enemy because of what you see is a mercantile is to trade policy.
You were style -- is effective way of dollar colony of the United States.
I that's I mean that is -- Fascinating perspective.
Why -- it's a great irony that the that China is a financial column in the united states of the large part of their reserves the base of their monetary system.
Has been dollar eyes while at the same time.
And 1994 and China devalued their currency -- do know -- wage rates even cheaper than they were ten and subsidize their exports by an undervalued our MB -- one.
And as a result help to be industrialized America.
Pegging the one.
To the dollar has infuriated.
For years now.
And and I have for the life -- never quite understood why because one of the things that's been demonstrated is that there's no price elasticity between.
In China and the United States and the trade relationship we have to buy their goods we have no choice.
And anytime that things like in the -- is allowed to float we're gonna pay the price as a result -- we now.
Well I think would be a good thing for the -- To float.
In as much as the entire world is in the midst of an.
The anarchy of floating exchange rates the only solution of course is to end the volatility in the anarchy of floating exchange rate.
And to stabilize the exchange rates as well as to.
We store they need gold value of the dollar if it has to the price elasticity in the fact -- be paying more at least in the short term as we move to some sort of equilibrium in the exchange rate.
Is that not the case in stabilization would automatically follow floating.
Without as another prescription which you've offered -- the undervalued -- will walk.
Make unemployment ever more severe in the United States.
And while the Chinese.
Exports the United States month might go up seven -- 10% depending upon the sector of the economy.
The key thing is that.
Would cease to labor under this tremendous disadvantage.
Of a -- export sector in the largest population.
Of an exporting country in the world.
And more let me ask you this because it fascinates me -- your your article I think is is terrific.
It fascinates me though that there is no administration her has -- no administration.
From Clinton for.
That is dare.
To actually respond strategically to the Chinese.
Instead we have transferred our knowledge base to the Chinese.
We have simply couch bound to their every demand on trade we've ignored there's -- station.
Of their industries their factories or workers.
And for the life for me I don't understand why well I'm glad somebody else's indignant about this and you are certainly right.
Administrations Republican and Democrat have ignored what I do described as well I'm a potential moral threat.
To not only United States but our relationships with.
All of the Asian Condit that -- the Chinese from for twenty years have -- America out of the western Pacific and they want us out of the the Asian cotton.
I think it's quite clear what North Korea on their nuclear weapons they've made fools of American administrations well intentioned American for president's.
Who in fact make every effort to accommodate them.
When we must show some state.
I just -- it's unfathomable.
-- -- and we it's suffer the indignity of not the outright outrage of cyber attacks numbering in the hundreds of thousands each and every day.
We know full well of from the PL.
-- even the Chinese army.
Against our AdSense in this country it is unfathomable why there is no response.
From our leadership what we have Vice President Biden.
Up in China.
In the for the last week we don't want to second guess anybody here know I mean the other you know I'm series -- well intentioned man.
But he's making the most accommodating -- -- Remarks about.
Our relations with China which is by -- call China.
A mercantile list the predatory not only are they a strategic threat as.
Krauthammer was making -- case I think earlier this week but there are also.
They are an economic threat.
Because they are engaged in theft of American industrial.
Secrets as well as an American defense and we should be clear this is not -- -- -- this week or this year.
Or over the last few years this has been going on since 1994.
And increasing only an intensity.
And and boldness on the part of the Chinese and as you say -- over the -- been the response.
Successive administrations and congresses.
What can we talk about this more in love to have you back as soon as possible would continue with what you see is some prescriptions for for remedy here.
I think everybody would love to hear that.
We need to talk about what are the remedies for all these -- defects and our defense policy as well as our monetary policy abroad.
We've got a deal -- or.
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