Even more propaganda

http://english.aljazeera.net/indepth/opinion/2011/04/2011422162154348108.html

 Imports wouldnt curtail economic growth. In contrast, it would only help support it. Any form of private consumption would lead to economic growth as its a major element in GDP evaluation. Consumer spending, whether it is on foreign or domestic goods is a major contributor to economic vitality. But it wouldnt necessarily reduce inflation in China because goods sold from the united states would normally be priced above what goods are priced in China. In order to reduce inflation, China would have to import the product at american prices, and then sell the product domestically at an even lower price. This way, setting the price below market value wouldnt create shortfall in goods since the state would simply use imports to cover the gap.

 The logic isnt flawed. However currency appreciation is the more preferred choice. And if not, at least continue to drive up the money supply. Stagnating the money supply and reducing bank loans would slow down economic growth. Thats the very reason why Japan entered a recession. It tried to keep export prices stable by holding down money flow as appreciation in the Yen moved to counter that.

  Instead of trying to keep a favorable trade balance, the better policy is to maximize what you are capable of building and producing. Instead of holding onto foreign bonds and currencies. The best thing to do is to let them go. Trade them towards tangible and physical assets. The balance in trade measured in currency becomes irrelevant as the balance is best measured in the total amount of physical assets than can be delivered to China in exchange for fiat currency and finished goods.

  americans will eventually get their trade balance with China, but they will be losing their currency as a sacrifice. Bonds and currencies dont require much effort to produce. They can be performed by key strokes. Physical assets and commodities however do require significant effort to produce. And that thus should be your main focus.