Schiff on Our Relationship With China

This morning, I wrote the following in my Wrong Wage post:

To me, the implication is that as wages rise in the "Chi" half but stagnant in the "merica" half of Chimerica, we will be increasingly paying more for Chinese made goods AND have more demand for those goods by the emerging Chinese middle-class themselves. So from a supply side and the demand side we will have pressures driving up the cost of our goods while US wages stagnate. 

Now, Peter Schiff is saying something very similar at this point in an interview on RT:

http://youtu.be/hkEthqUEKA4?t=6m12s

"People keep saying that China has an export economy. They don't. They have a production economy. The fact that they export their production is their loss. If they simply let the dollar fall and their own currency rise, they would still produce. Except it would be the Chinese that would enjoy the products that are being produced instead of Americans. And the Chinese economy would be much stronger."

The whole interview is worth watching, so I embedded it here. I think it's notable that we are starting to hear more of the idea that China doesn't need to export to the US to sustain it's economy. This goes against a lot of the conventional wisdom on our relationship to China. Interesting times ahead.