Beijing warns on US currency law (warns about 1930s-like depression)

[alp227]

Source: Financial Times

China has warned that the US could plunge the global economy into a 1930s-like depression if it passes a bill that aims to punish Beijing for holding down the value of its currency.

With the Senate set to vote on Tuesday on legislation that would impose tariffs on imports from countries that manipulate their exchange rates, China has said that the consequences of such a move could be dire, leading to a trade war.

In a commentary just hours ahead of the vote, the official Xinhua news agency took the warnings a step further, saying the proposed legislation in the US was reminiscent of the Smoot-Hawley tariffs in 1930 that worsened the Great Depression.

“Comparing the current political and social situation with that of 80 years ago, we can find stark similarities: an economic downturn, a high unemployment rate, marked popular discontent, and growing political conflicts, especially when presidential politics is getting hot,” it said.

Read more: http://www.ft.com/cms/s/0/5a6bd3ca-f3fc-11e0-b221-00144feab49a.html

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[Left Coast2020]

1. Its nice to see the "other" one-percent panic a little.

Xinhua probably didn't mention in its story that President Hu gets nervous when there is an uprising that threatens his power. I'm sure many progressives in China are watching us.

[Raster]

2. And why does China think they have the USA by the short and curlies?

Because our government has borrowed heavily from China. Heavily.

Did that money go to repair the US infrastructure? NO!

Did that money go to paying down USA debt? NO!

Did that money go to feeding hungry citizens? NO!

Did that money go to housing the homeless? NO!

Where did all the money go?

Tax refunds for millionaires, tax breaks for rich multinational corporations, and into the pockets of the Military Industrial Complex and their two illegal wars of greed!

[area51]

15. +1, exactly.

This was unnecessary debt. At least the govt. should do the honorable thing -- end the wars of choice -- for three reasons: it's immoral to ask our people to join the military to die for pipelines, it's inhuman to use wars of choice as our only jobs program, and we can't afford to continue allowing the Chinese govt. to have us by the short hairs: it's a national security issue that we're addicted to wars and the money to fund them.

[tawadi]

3. China warns, China warns, China warns

:puke:

[Amonester]

10. Actually, it's more like the 1% of 1% of China's entire population.

They con$ider them$elve$ "eteRnal" too...

Money coRRupt$ BIG time. :puke:

gReed is universal. :puke:

[Uncle Joe]

4. The fundamental question is, has China been keeping its' currency artificially low?

If it has, the economic correction will become even more severe given time.

Thanks for the thread, alp.

[OhioChick]

5. 100% in agreement, Uncle Joe

K&R

[WCGreen]

6. Yep, you got that right on...

[Warren DeMontague]

11. The consensus seems to be that they have been for some time, now.

It's as much a factor in the current trade imbalance as the low wages and lack of labor and environmental protections IMHO.

[Xicano]

12. Exactly Uncle Joe

It would be my presumption given the current economic situation, inflating our currency into oblivion among other things, that this move looks more to me like stagecraft to obscure the true cause of the economic mess which is very likely to get much worse. It looks like something they could use to point to and blame when the correction which is guaranteed at this point as far as I'm concerned happens.

[Romulox]

7. Sometimes barking dogs bite. They almost ALWAYS bite when they get that silent, intent look...

China is a yapping dog, imo. Even if it tries to bite, the damage is likely to its teeth, not our shin!

[Vincardog]

8. China can't do anything to worse than the corrupt crony Capitalists have done . Bring it on

it will hurt Walmart worst than any real people,

[LiberalAndProud]

9. Would a trade war be a bad thing?

I find few products on local retail shelves that don't say "Made in China". If that imbalance could be stemmed with a trade war, I can't say I'd be upset. Is there someone here with a better understanding of the potential downside who would care to educate me?

[Warren DeMontague]

13. problem is, the artificially low currency has benefitted BOTH them & US Big Biznizz.

US workers, not so much.

It's well past time it was addressed.

[Romulox]

14. First rule of economics: no such thing as a free lunch

The vast majority of Chinese remain poor, almost peons or slaves in some cases. The American ruling class has become much richer, and a few Chinese slave-drivers have prospered. But there was no "free lunch".

They ate ours.