Hammond: China distorts trade via suppressed consumption and overproduction, not currency
Samuel Hammond · Why Industrialization WON'T Create New JOBS | Samuel Hammond on TBPN April 8th · Apr 10, 2025 · at 7:11
Samuel Hammond explains China's macroeconomic model and industrial overcapacity in response to questions about currency wars.
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“China was a currency manipulator through throughout a lot of the 2000 and early 20 tens, but it really, that really hasn't been the main way that they cheat. They cheat by basically suppressing household consumption and, you know, having these 60% saving or savings rates. And so they ended up building these ghost cities and, you know, whatever technology they enter, whether it's cars or telecom equipment or pick, pick your poison, they just overproduce it to the maximum, drive down the cost worldwide, and then Have to find these export markets to dump it.”
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