An American Currency Battle With China Is Heating Up

[OmahaBlueDog]

Source: AOL News

(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.


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

[sonomak]

1. This should have been done a long time ago!

[OmahaBlueDog]

2. I agree

More importantly, this is an issue that there should be a bipartisan consensus. Unless you are in retailing, there is nothing good about our current trade and currency situation.

[Kolesar]

3. Good election season issue that plays well everywhere

Except with Big Ag, who loves trade deals.

[Name removed]

5. Deleted message

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[Kringle]

4. welcome news .nt

[dipsydoodle]

6. "policies that cost American jobs"

may well be the aggregate case over time but how many are likely to created be in the US or even elsewhere as a result of current measures ? Probably few if any.

[MrTriumph]

8. As someone who owns a business that imports and exports, China has been stealing American jobs

Because China has kept their currency artificially low, Chinese goods artificially cheap.
What is imperative is that the US government DO WHATEVER IT TAKES to end this situation.

Bush and Obama have both skirted fighting with American and Multi-National businesses that have gotten rich by taking advantage of the situation. And despite Obama's assertions otherwise, the USA manufacturing gains by exporting to Europe are MINUSCULE given 3 long years of a Weak Dollar Policy against the Euro.

So how can huge gains in US employment be achieved? Push China to increase the value of their currency. American companies will be created to build the merchandise that was once imported.

[madrchsod]

7. the walton family and others wo`t like that....

it`s not going to happen until china crashes

[roamer65]

9. Go ahead and make the Chinese break the currency peg....

and see what happens. LOL.

I think hyperinflation will be fun. All those zeros will make us feel rich.