Monday, January 09, 2012
Thoughts on the race after Saturday's Republican debate
I thought Romney had a good night. I'm mystified somewhat by his take on the Chinese currency question. I'd have to defer to Greg Mankiw's argument on this. The Chinese change the ratio of dollars to yuan by buying our Treasury instruments. Thus they make the dollar more dear, the yuan less so. Romney is thus demanding that the Chinese buy less of our debt which would make our debt service more expensive. I suppose he knows this but doesn't want to explain it in Ohio and will change his position given cover as Gingrich did for him on the immigration question. It's that sort of thing though that bothers me. Here I don't know know if he believes something or if he figures the voters are too stupid/ prejudiced to be talked to. I suppose the currency position polls well, and maybe he has set it up as a defense against Huntsman. He seemed awful ready to counter punch him over the Chinese issue.