On point 1 - I agree with you in theory, in that anything we spend externally needs to be paid for by either selling something against it, or borrowing. This is Germany's issue too: they lend people money, so that others can buy their goods. My sense is that the Chinese aren't propping the currency up as much as they used to, but that's not based on hard data.
On 2 - In general countries (though not necessarily specific individuals and companies) do better with cheaper goods. This is why the gains of trade almost always exceed the costs. The question is does a forced cheapening by China create inefficiencies by moving us to tasks that we don't have competitive advantage? I don't know the answer.
Good discussion, and I appreciate your insights into economics.
On 2 - In general countries (though not necessarily specific individuals and companies) do better with cheaper goods. This is why the gains of trade almost always exceed the costs. The question is does a forced cheapening by China create inefficiencies by moving us to tasks that we don't have competitive advantage? I don't know the answer.
Good discussion, and I appreciate your insights into economics.