The US Treasury’s top diplomat had some less-than-diplomatic words for China last week, decrying what he described as the country’s shift away from market-oriented policy.
Speaking at an event hosted by Washington, DC-based think tank The Hudson Institute, David Malpass, undersecretary of the Treasury for international affairs, accused China of taking advantage of the global system to the detriment of other countries.
“While [China] professes to embrace globalization and openness, in practice its trade regime is mercantilistic and restrictive, and China has not embraced fair and market oriented policies,” Malpass said.
“China takes advantage of the open investment climate provided by the US and other countries, but does not offer or allow a reciprocal investing relationship,” he added.
He went on to warn that “as China’s portion of world GDP increases, China’s direction away from markets is a key risk in the long-term global growth outlook.”
At a separate event on Wednesday, Malpass implored that China should no longer be “congratulated” by the world for its progress and policies.
In his role at the Treasury Department, Malpass oversees policies in the areas of international finance, trade in financial services, investment, economic development, and international debt policy.
The US Treasury is the last Federal Department to talk about fair trading practices. All one has to do is look at the US Treasury has done to Venezuela’s economy.
Based on politics where Caraccas has taken a pro Palestinian stand and a hard anti Israeli stand coupled with a few other poltical issues the US Treasury department got involved. The following is an excerpt from the magazine "Foriegn Policy":
"Cutting off the government’s access to dollars will leave the economy without the hard currency needed to pay for imports of food and medicine. Starving the Venezuelan economy of its foreign currency earnings risks turning the country’s current humanitarian crisis into a full-blown humanitarian catastrophe
That’s what began to happen in 2017. Last year, Venezuela’s export revenues rose from $28 to $32 billion, buoyed by the recovery in world oil prices. Under normal conditions, a rise in a country’s exports would leave it with more resources to pay for its imports. But in the Venezuelan case, imports fell by 31 percent during the same year.
The reason is that the country lost access to international financial markets. Unable to roll over its debt, it was forced to build up huge external surpluses to continue servicing that debt in a desperate attempt to avoid a default. Meanwhile, creditors threatened to seize the Venezuelan government’s remaining revenue sources if the country defaulted, including refineries located abroad and payments for oil shipments
U.S. economic sanctions have stopped Venezuela from issuing new debt and blocked attempts to restructure its existing debt obligations. Major financial institutions have delayed the processing of all financial transfers from Venezuelan entities, significantly hampering the ability of Venezuelan companies to do business in the United States. Even Citgo, a Venezuelan-owned subsidiary that owns 4 percent of the United States’ refining capacity, hasn’t been able to get U.S. financial institutions to issue routine trade credit since sanctions were imposed. "
Key risk?
Says the economy that almost brought the whole capitalism world down in 2008, saved only due to printing fake money out of its ass for the next 10 years and flood the rest of the world via its "reserve currency" (more like monopoly currency) valve.
Take out the monopoly currency statues, how are you going to pay 20 trillion debt and continued deficits? All those shiny american social programs that attracts the envy of the world’s peoples that comes to your shores…how are you going to continue them? Maybe then Americans will have to truely work their real ass off to actually match the consumptions and perks they enjoy or cut back accordingly? Maybe then Americans will finally puts leash on their runamok elites in DC who dreams of meddling everywhere on Earth to come back home and do some real work for a real country and economy?