House of Paine

china exit gate tax ;better then a revaluation?

"clever untrustworthy "
          viets on hans 


now the  non stop 
             middle kings have 
slapped on an export tax .....

shrewd indeed


============================



"China announced plans yesterday 
to sharply increase taxes 
on its exports of clothing, "

"China's announcement was evidently aimed 
at persuading Washington
 to roll back its protective measures"



"The Chinese action 
would raise export duties 
on 74 categories 
of Chinese clothing 
 to a range of 12 to 48 cents 
      per garment"


.----- obviously
all this is one way viewed here
another over there 
the struggle over who captures what party of the domestically produced value added(va)
 is always in play

revaluation would re patriate
 some of the va 
now captured by foreign importers 

 but 
 a sufficiently 
  accurate and  complex vector  
of export taxes would capture 
more  value
out  of their exports 
then a revaluation 

while retaining cheap 
 foreign investor prices 
for  her domestic labor 

obvious bonus 
to the red  bureaucrats 
exit taxes 
 allow a central control
 over the out  flow
           of commodities 

to see the equivalence /diff 

imagine a revaluation

now imagine a uniform  export tax 
on all products 
that to the "outside"
creates   revaluation equivalent  
foreign market import  prices 

now jigger with the taxes based on elasticies ...


"pareto improved" resultover revaluation
       guaranteed 

in a better world then ours at least


of course we all live 
in this  world 
where export taxes
will surely  breed corruption 
when the amounts amount up to something

by the way
i'm not too sure the han have fully 
copt to their own gig here