My goodness - NY Times columnist Paul Krugman has a Nobel Prize for his work in international trade but the NY Times editors have totally tuned out his embrace of the Senate Democrats and their China-bashing currency bill.
Let's hear from the Princeton Populist first:
The dire state of the world economy reflects destructive actions on the part of many players. Still, the fact that so many have behaved badly shouldn’t stop us from holding individual bad actors to account.
And that’s what Senate leaders will be doing this week, as they take up legislation that would threaten sanctions against China and other currency manipulators.
Respectable opinion is aghast. But respectable opinion has been consistently wrong lately, and the currency issue is no exception.
And the respectable opinion of the Times editors:
The Wrong Way to Deal With China
China is undeniably manipulating its currency. Countries around the world, including the United States, are losing jobs because their manufacturing industries cannot compete with artificially cheap Chinese goods. For the good of the world economy, and its own long-term economic development, China should stop.
Still, a Senate bill, with strong bipartisan support, to punish countries that manipulate their currencies is a bad idea. It could do even more damage to the American economy if — as is all too likely — China decides to retaliate.
Krugman, a prophet without honor, has lost his own left-leaning editors with his latest dive into the Democrats tank. And for old time's sake, let's recall that when President Bush was complaining about China's currency manipulation in 2003 Krugman was there to explain what a moron Bush was. Hmm, maybe Bush was smarter than Krugman on the question of whether China was manipulating its currency?
Ah well, a foolish consistency is the hobgoblin of little minds.