UtopianRanger
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quote:
ORIGINAL: Termyn8or
For years the yuan has been pegged to the dollar and the Chinese enjoyed the benefits of this. Now this is the other side of the coin.
One thing the Bush administration did try to do is to convince them to unpeg the yuan, but that would be ridiculous now. They should have brought pressure to bear at the beginning.
Right now the US should probably insist that the yuan remain pegged to the dollar so they can take the ride down with us.
T
They’re attempting to correct a vast imbalance in trade by manipulating a floating rate—monetary policy-- scheme in which they concocted. Not only is that moronic, but as you can see it doesn’t work.
Also….by pressuring China to correct what they deem to be an impropriety in currency values, is essentially erecting a hidden tax on the lowest common denominator here in the states.
You correct a trade imbalance by supplanting imported manufactured goods with ones that are manufactured here at home. Or, you can demand /insist your trading partners import more of your manufactured goods.
The only reason to attempt using monetary policy to correct the imbalance is so corporate America can maintain its steady flow of high profits through the subversion of the American workforce.
That's neoliberalism in its finest hour.......
- R
_____________________________
"If you are going to win any battle, you have to do one thing. You have to make the mind run the body. Never let the body tell the mind what to do... the body is never tired if the mind is not tired."
-General George S. Patton
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RE: Chinese goods no longer cheap? - 
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