An American Currency Battle With China Is Heating Up

[spookyturtle 9,466]

(Sept. 24) -- Congress is moving to give President Barack Obama new ammunition in a long-running feud with China over currency policies that cost American jobs, but the White House may not want to use it.

The House Ways and Means Committee today passed a measure that would declare currency manipulation -- like China's habitual efforts to keep the yuan from rising against the dollar -- a trade subsidy open to retaliation that includes tariffs on Chinese imports.

American textile makers, unions and lawmakers from both parties have long complained the artificially low yuan makes U.S. goods more expensive and less competitive than their Chinese counterparts. One study cited by the committee estimates that 500,000 manufacturing jobs could be created if the yuan were allowed to appreciate to its real value, though it's uncertain whether blue-collar work now done in China would shift back to the U.S.

"By taking a stand today, this committee takes the lead in standing up for American workers and businesses, and holding China accountable for the manipulation of its currency," Chairman Sander Levin, D-Mich., said after the vote. "The measures included in this bill provide the administration with additional tools for enforcing the rules of trade and ... will also bolster the administration's efforts to bring about a multilateral framework for addressing this global issue."

Whether the administration would use such tools is another story.

White House officials said Obama used most of a two-hour meeting with Chinese Premier Wen Jiabao on Thursday to discuss the currency issue. Though neither leader mentioned currency matters in the brief remarks they made afterward, Obama described their economic discussions as "frank" and Wen called them "candid" -- diplomatic codes for when leaders can't reach agreement.

Jeff Bader, the top Asia official on the National Security Council, told reporters that Obama pressed the "need for China to do more than it has done to date" on the imbalance between the yuan and dollar, while Wen reiterated the "Chinese intention to proceed to continue with reform of their exchange-rate mechanism."

That's hardly enough to satisfy the Americans, since more than half a decade of Chinese efforts along those lines has led to only incremental increases in the yuan's value against the dollar -- an imbalance many economists consider off by as much as 25 percent.

With unemployment among the top concerns of voters ahead of the midterm elections and the president promoting greater exports as an economic salve, the White House suggested Obama was playing tough.

"If the Chinese don't take actions, we have other means of protecting U.S. interests," Bader said.

And the issue did overshadow U.S.-Chinese disputes over policies on Iran, North Korea and even a bitter stand-off between Japan and China that prompted Defense Secretary Robert Gates to note Thursday that if the two neighbors went to war the U.S. would have to side with ally Japan.

But the Obama White House is taking no position on the Ways and Means bill, and it's not the first White House to hedge on the currency fight.

Congress gave the Clinton and George W. Bush administrations new tools to retaliate against China for currency manipulation, and neither used the tools for anything more than threats, repeatedly shying away from a fight.

Though the U.S. has been willing to challenge China on other trade policies -- including copyright violations, subsidies for clothing and aid to the steel industry -- the currency question is regarded by the Chinese as a challenge to its sovereignty and a threat to economic growth that still relies on plying the factory floor for the likes of Wal-Mart.

While the Obama administration has been publicly touting the issue, with two appearances on Capitol Hill last week by Treasury Secretary Timothy Geithner as well as the Obama-Wen meeting on the sidelines of a United Nations summit, the true test of its commitment to pushing China may be if the push continues after the Nov. 2 election.

http://www.aolnews.com/nation/article/an-american-currency-battle-with-china-is-heating-up/19648096

[Heracles 417]

Bud, hate to be the bearer of bad news again but you owe them $800 billion and they have like $2 trillion USD in cash.

I also read the other day that they are amassing a large sum of gold too.

[spookyturtle 9,466]

Bud, hate to be the bearer of bad news again but you owe them $800 billion and they have like $2 trillion USD in cash.

I also read the other day that they are amassing a large sum of gold too.

Should we surrender now? What do you think? Mass suicide? Give up? Move somewhere else?

[Heracles 417]

You can start by getting your ###### together, which is never going to happen when folks like yourself still think the US of A is numero uno at everything. Furthermore, anyone illustrating otherwise is apparently just a hater; rather the someone simply delivering the news - aka reality.

Then you have the tea-party/Libertarian types who think doing the exact opposite [economically] to the measures turning China into a Goliath is the best approach. Libs probably still think rights are the biggest problem facing Americans, as surely if gay dogs cannot marry, this is just epic - wrong wrong wrong.

Edited September 25, 2010 by Heracles

[luckytxn 2,265]

(Sept. 24) -- Congress is moving to give President Barack Obama new ammunition in a long-running feud with China over currency policies that cost American jobs, but the White House may not want to use it.

The House Ways and Means Committee today passed a measure that would declare currency manipulation -- like China's habitual efforts to keep the yuan from rising against the dollar -- a trade subsidy open to retaliation that includes tariffs on Chinese imports.

American textile makers, unions and lawmakers from both parties have long complained the artificially low yuan makes U.S. goods more expensive and less competitive than their Chinese counterparts. One study cited by the committee estimates that 500,000 manufacturing jobs could be created if the yuan were allowed to appreciate to its real value, though it's uncertain whether blue-collar work now done in China would shift back to the U.S.

"By taking a stand today, this committee takes the lead in standing up for American workers and businesses, and holding China accountable for the manipulation of its currency," Chairman Sander Levin, D-Mich., said after the vote. "The measures included in this bill provide the administration with additional tools for enforcing the rules of trade and ... will also bolster the administration's efforts to bring about a multilateral framework for addressing this global issue."

Whether the administration would use such tools is another story.

White House officials said Obama used most of a two-hour meeting with Chinese Premier Wen Jiabao on Thursday to discuss the currency issue. Though neither leader mentioned currency matters in the brief remarks they made afterward, Obama described their economic discussions as "frank" and Wen called them "candid" -- diplomatic codes for when leaders can't reach agreement.

Jeff Bader, the top Asia official on the National Security Council, told reporters that Obama pressed the "need for China to do more than it has done to date" on the imbalance between the yuan and dollar, while Wen reiterated the "Chinese intention to proceed to continue with reform of their exchange-rate mechanism."

That's hardly enough to satisfy the Americans, since more than half a decade of Chinese efforts along those lines has led to only incremental increases in the yuan's value against the dollar -- an imbalance many economists consider off by as much as 25 percent.

With unemployment among the top concerns of voters ahead of the midterm elections and the president promoting greater exports as an economic salve, the White House suggested Obama was playing tough.

"If the Chinese don't take actions, we have other means of protecting U.S. interests," Bader said.

And the issue did overshadow U.S.-Chinese disputes over policies on Iran, North Korea and even a bitter stand-off between Japan and China that prompted Defense Secretary Robert Gates to note Thursday that if the two neighbors went to war the U.S. would have to side with ally Japan.

But the Obama White House is taking no position on the Ways and Means bill, and it's not the first White House to hedge on the currency fight.

Congress gave the Clinton and George W. Bush administrations new tools to retaliate against China for currency manipulation, and neither used the tools for anything more than threats, repeatedly shying away from a fight.

Though the U.S. has been willing to challenge China on other trade policies -- including copyright violations, subsidies for clothing and aid to the steel industry -- the currency question is regarded by the Chinese as a challenge to its sovereignty and a threat to economic growth that still relies on plying the factory floor for the likes of Wal-Mart.

While the Obama administration has been publicly touting the issue, with two appearances on Capitol Hill last week by Treasury Secretary Timothy Geithner as well as the Obama-Wen meeting on the sidelines of a United Nations summit, the true test of its commitment to pushing China may be if the push continues after the Nov. 2 election.

http://www.aolnews.c...ing-up/19648096

I love it when the world under estimates the U.S. of A. Bring it on China. It will be fun watching you sink without us buying your ratty azz junk. What other markest you got to keep you afloat? Australia? *snicker*

[Heracles 417]

I love it when the world under estimates the U.S. of A. Bring it on China. It will be fun watching you sink without us buying your ratty azz junk. What other markest you got to keep you afloat? Australia? *snicker*

Texan, what is your house worth again? Please tell me so I can gloat.

Who do you think is going to propel the US? The Enron state?

Edited September 25, 2010 by Heracles

[spookyturtle 9,466]

You can start by getting your ###### together, which is never going to happen when folks like yourself still think the US of A is numero uno at everything. Furthermore, anyone illustrating otherwise is apparently just a hater; rather the someone simply delivering the news - aka reality.

Then you have the tea-party/Libertarian types who think doing the exact opposite [economically] to the measures turning China into a Goliath is the best approach. Libs probably still think rights are the biggest problem facing Americans, as surely if gay dogs cannot marry, this is just epic - wrong wrong wrong.

My act is together quite well. I do not think that the US is number one in everything. But I also don't think that the rest of the world is better than us like you do. I live in reality, evidently your the one who doesn't. So you are the chosen one to delver the news? What you say and think is gospel? Please, you're really quite insignificant in the scope of life. You have nothing good to say about the US. Ever. What's your answer to that? Ignore it? Change the subject when backed into a corner as you normally do? But I know, you're not a hater, you're just bringing the news. It says a lot about a person who constantly bites the hand that feeds them. I didn't give you the hater label. You did that all by yourself. Be proud.

[spookyturtle 9,466]

I know you're not a hater. Check out this thread. http://www.visajourney.com/forums/topic/229114-america-appreciation-thread/

Not one positive post.

Edited for direct link.

Edited September 25, 2010 by spookyturtle

[luckytxn 2,265]

Texan, what is your house worth again? Please tell me so I can gloat.

Who do you think is going to propel the US? The Enron state?

Which house? Also want to know the worth of the several pieces of property I own and the large acreage? How about the business I built last year with my own hands that is doing even better than I expected by this time. Want to know which of my vehicles I own and are paid for is my fave? Have many more assets so want to know about them too?

When it is all said and done with I have been to your pissant country and found it much of nothing especially the men that are pathetic.

Trust me when that piss poor country you love is in trouble the U.S. of A will as usual come and save your azzes again. Now what will that country do for us? Nothing? Thought so as usual.

Now when China falls and then your economy tanks come crying to us........again.

[Heracles 417]

Nice to know you paid attention to the guys. I cannot tell you about the guys in Texas, as I only focused on the girls. Though, the guys did like our style and drinking abilities. Hence bounces at one club, taking a group of us out to some other clubs they know, following their shift.

Edited September 25, 2010 by Heracles

[spookyturtle 9,466]

Texan, what is your house worth again? Please tell me so I can gloat.

Who do you think is going to propel the US? The Enron state?

He owns a house. You live in an apartment. What is there to gloat about?

[Usui Takumi 1,562]

Well now that the Yuan is sorta unpegged (whats the swing? 1.5% max per day?) just let the dollar devalue further...its already killing exporters like Japan.

In threads like this I always point out China's greatest weakness - food. The country is a net importer and the gap is growing exponentially as farm land is lost to development/erosion/pollution. World farm production is peaking....population is growing....

There will eventually come a day when the world collectively can turn to China and say "Let them eat cake".

And don't get me started on China's perm. damaged water supplies.......or the fact that the country is facing a serious threat from desertification.

Seriously, no one can stop China, no one will need to, she will kill herself.

I also believe that in the next ten years the Chinese economy will begin to flatten out as production is shifted to places like vietnam etc.

Edited September 25, 2010 by Sousuke

[lostinblue 1,989]

Well now that the Yuan is sorta unpegged (whats the swing? 1.5% max per day?) just let the dollar devalue further...its already killing exporters like Japan.

In threads like this I always point out China's greatest weakness - food. The country is a net importer and the gap is growing exponentially as farm land is lost to development/erosion/pollution. World farm production is peaking....population is growing....

There will eventually come a day when the world collectively can turn to China and say "Let them eat cake".

And don't get me started on China's perm. damaged water supplies.......or the fact that the country is facing a serious threat from desertification.

Seriously, no one can stop China, no one will need to, she will kill herself.

I also believe that in the next ten years the Chinese economy will begin to flatten out as production is shifted to places like vietnam etc.

If North Korea ever opened up they would gladly work 80 hours a week for 50 cents per hour.

[Heracles 417]

He owns a house. You live in an apartment. What is there to gloat about?

Yes I rent a house here, I own property back in AUS, amongst other countries. I'm not interested in owning property here.

Edited September 25, 2010 by Heracles

[Atencio 43]

My act is together quite well. I do not think that the US is number one in everything. But I also don't think that the rest of the world is better than us like you do. I live in reality, evidently your the one who doesn't. So you are the chosen one to delver the news? What you say and think is gospel? Please, you're really quite insignificant in the scope of life. You have nothing good to say about the US. Ever. What's your answer to that? Ignore it? Change the subject when backed into a corner as you normally do? But I know, you're not a hater, you're just bringing the news. It says a lot about a person who constantly bites the hand that feeds them. I didn't give you the hater label. You did that all by yourself. Be proud.

Yeah I learned the same thing from after reading a few of his posts. It gets to be quite tiresome.

Edited September 25, 2010 by Atencio