Factbox: China's decade in the WTO

Comments (1)
mgunn wrote:

The biggest subsidy in the history of mankind is… TARP. This subsidy blows away all other by a factor of a thousand and permeates its benefits to not only the finance and banking sector but ALL businesses in the US which obtain financing (which is pretty much everything).

We also get cheaper financing than the rest of the world by having pushed for a strong-dollar policy for decades. This denomination of international transactions in our currency cannot be used directly within the foreign country’s economy and is thus reinvested back into the US (by design) and we willingly receive it (as FDI or Treasury sales) which lowers our interest rate, in effect a subsidy.

Another benefit of our strong-dollar policy is simply that we can print what foreign countries earn. We get real products and they get our paper (cash) which we print at will, in effect an interest free IOU (i.e. a loan) We can and have printed money liberally (unlike the ECB, think QE1 and QE2) and this is in effect another incredibly massive subsidy beyond all other countries.

Nov 29, 2011 2:00am EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.