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To: untrained skeptic
It all revolves around the definition of artificially.

If the currency were allowed to float presumably the dollar would drop against the yuan until trade was balanced. Meaning China's cheap labor advantage would be neutralized and the difference of lifestyles and wealth between the two countries would be maintained.

We see that as fair and natural. They don't.

25 posted on 04/18/2005 10:52:08 AM PDT by liberallarry
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To: liberallarry

"It all revolves around the definition of artificially."

The Yen is being kept from floating because of of the CHineese government's intervention. Without that intervention, the currency would float.

The price of oil and the demand for oil in the United States is set by the free market. You are suggesting government intervention to cap oil usage.

In neither case is it dificult to see which approach is artificial.

In the case of the Yen, China's trading partners are insisting that China trade with them on fair and equitable terms.

Your suggestion that America cap our oil consumption has less clear goals.

It would devestate our economy, and give a huge boost to the economies of other countries. Why do you suggest we do this? It's definately not in the best interest of the United States.

Trade is in the best interest of China, and we are insisting that they trade fairly if they want us to continue trading with them without sanctions.

What benefit is the US going to gain by cutting our oil usage in half?

I can understand that we should cut our oil usage where possible to save costs and increase our efficiency, but I see no justification for the government to step in and regulate our oil consumption to half of what it is now.


29 posted on 04/18/2005 11:11:15 AM PDT by untrained skeptic
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To: liberallarry
"It all revolves around the definition of artificially"

(I say this in jest - not as an insult) That's kind of like arguing about the definition of "is".

The G7 is pushing for a level playing field in which the market determines the exchange rate. It seems that the Chinese do not so much see this is unfair but as less advantageous than the present situation. Sure the Chinese can print all the Yuan they like but we can also enact all the tariff's we like in order to balance the situation. At the end of the day will will end up with a floating Yuan it's just a question of how many ox's get gored along the way.
34 posted on 04/18/2005 11:47:34 AM PDT by cdrw (Freedom and responsibility are inseparable)
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