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China to U.S. on Currency Revaluation: Drop Dead
AmericanEconomicAlert.org ^ | Monday, November 22, 2004 | Alan Tonelson

Posted on 11/24/2004 8:27:59 AM PST by Willie Green

For education and discussion only. Not for commercial use.

"Working closely with U.S. Treasury officials,.China, according to Governor Zhou of China's People Bank, has made [currency flexibility] a top priority and has made a series of policy moves to liberalize....these are clear signs that the Administration's efforts are paying dividends. A Section 301 action would not assist in these efforts, and indeed could be more damaging than helpful at this time. We therefore must decline to accept the course of action recommended through this latest petition."

~ Nenna Moorjani, U.S. Trade Representative's Spokesperson, November 12, 2004

"I think [currency flexibility] probably needs a couple of years. China is not providing a time frame. We don't know what the time frame will be."

~ Li Ruogu, Deputy Governor, People's Bank of China, November 13, 2004

Sources: "Statement from USTR Spokesperson Neena Moorjani Regarding a Section 301 Petition on China's Currency Regime," The Office of the United States Trade Representative, November 12, 2004;
"China Unlikely to Float Currency Soon, Official Says," by Jill Dutt, The Washington Post, November 13, 2004


TOPICS: Business/Economy; Culture/Society; Editorial; Foreign Affairs; Government
KEYWORDS: china; currency; globalism; thebusheconomy; trade; tradedeficit
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Related threads:
The Rising Threat from China: Seeing is Believing
CAFTA: The Expanding Trade Deficit with China by Another Name?
1 posted on 11/24/2004 8:28:00 AM PST by Willie Green
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To: Willie Green
US to JAPAN:

Here you go 300 ICBM and get a moveOn those Nuclear reactors.

US to China, Drop dead!
2 posted on 11/24/2004 8:30:30 AM PST by forYourChildrenVote4Bush (Thank you America)
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To: Willie Green

And this is news? They been saying that for years. When G7 met a couple months ago they said it.


3 posted on 11/24/2004 8:31:28 AM PST by durasell (Friends are so alarming, My lover's never charming...)
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To: Willie Green

I would love to see us be able to revalue their currency for them...this would cause Chinese import prices to skyrocket, force Walmart to its knees and force a reordering of the global order. I used to support free trade. We were told that steel was too expensive when we produced it...let the Chinese do it cheaper--"good for business". Now China's economies are so overheated that the demand for steel is as never before, forcing prices higher than ever. So much for the price advantage of Chinese steel.


4 posted on 11/24/2004 8:38:15 AM PST by montag813
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To: montag813

Note: Wal-Mart is now the second largest employer in the U.S. A lot of car payment and house payments are made with "wal-mart salaries." A lot of groceries are bought with wal-mart pay checks.


5 posted on 11/24/2004 8:41:55 AM PST by durasell (Friends are so alarming, My lover's never charming...)
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To: durasell
A lot of taxpayer dollars are spent subsidizing Wal-Mart wages...
6 posted on 11/24/2004 8:43:13 AM PST by radicalamericannationalist (The Senate is our new goal: 60 in '06.)
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To: radicalamericannationalist

That's true, too. But if you say it too loudly, then people will just say that those gov't benefits should be cut.


7 posted on 11/24/2004 8:45:15 AM PST by durasell (Friends are so alarming, My lover's never charming...)
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To: Willie Green

well, they can be persuaded.


8 posted on 11/24/2004 8:47:03 AM PST by the invisib1e hand (if a man lives long enough, he gets to see the same thing over and over.)
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To: durasell
A lot of car payment and house payments are made with "wal-mart salaries." A lot of groceries are bought with wal-mart pay checks.

Zero down, 99 years to pay, 24% APR.

9 posted on 11/24/2004 8:49:32 AM PST by Willie Green
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To: Willie Green
Shhh. If businesses are doing it, it must be right. Don't you know about the "invisible hand?" I think it was in the Bible.
10 posted on 11/24/2004 8:51:35 AM PST by radicalamericannationalist (The Senate is our new goal: 60 in '06.)
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The U.S. needs to focus on it's domestic economical security, and people need to start spending their money on AMERICAN made products, especially automobiles, appliances, and larger-cost products like this, which in turn will eliminate Foreign prosperity on these items, and increase production, jobs, and other economic factors within the U.S.


11 posted on 11/24/2004 8:52:12 AM PST by Legion04
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To: radicalamericannationalist

The "invisible hand," I believe, was Adam Smith.


12 posted on 11/24/2004 8:52:46 AM PST by durasell (Friends are so alarming, My lover's never charming...)
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To: radicalamericannationalist
Don't you know about the "invisible hand?"

No payments until after Xmas?

13 posted on 11/24/2004 8:54:16 AM PST by Willie Green
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To: Willie Green

Economists do it with invisible hands...


14 posted on 11/24/2004 8:56:50 AM PST by durasell (Friends are so alarming, My lover's never charming...)
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To: Willie Green

The current crop of Chinese communist leaders will pay for this mistake by being relieved of duty within a few years.

I'm hoping it's relatively peaceful, like when the U.S.S.R. imploded.


15 posted on 11/24/2004 8:59:50 AM PST by jdsteel
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To: durasell; radicalamericannationalist
Don't you know about the "invisible hand?"

It's the one that Wal-Mart pickpockets use to steal us blind!

16 posted on 11/24/2004 9:00:45 AM PST by Willie Green
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To: Willie Green
There has been a global loss of confidence in the dollar, dropping 5% in the past 30 days. There is a run on the dollar at Beijing banks as Chinese dump their dollars paying a premium for the yuan.

As in the late 70s, anybody who holds dollar denominated assets is a fool.

But all is not lost. There is an upside in going the way of Argentina. An opportunity for a new beginning.


BUMP

17 posted on 11/24/2004 9:00:45 AM PST by tm22721 (In fac they)
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To: durasell

Yes, I just looked and saw that my sarcasm tag was not included in the post. My point is that for some conservatives, economic theories developed for a world centuries passed have taken on the authority of revealed truth.


18 posted on 11/24/2004 9:00:58 AM PST by radicalamericannationalist (The Senate is our new goal: 60 in '06.)
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To: Legion04
The U.S. needs to focus on it's domestic economical security, and people need to start spending their money on AMERICAN made products, especially automobiles, appliances, and larger-cost products like this, which in turn will eliminate Foreign prosperity on these items, and increase production, jobs, and other economic factors within the U.S.

Then American workers need to start making something other than overpriced crap.

19 posted on 11/24/2004 9:02:49 AM PST by Poohbah (Crush your enemies, see them driven before you, and hear the lamentations of their women!)
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To: radicalamericannationalist
Drat. It appears my sarcasm tag did not get posted in this. For everyone who wants to point out my "ignorance," I know that Adam Smith coined the term. Sadly, it seems that some elements of conservatism have taken Smith as a revealed truth and not an economic theorist whose philosophies were developed for a world centuries past.
20 posted on 11/24/2004 9:02:50 AM PST by radicalamericannationalist (The Senate is our new goal: 60 in '06.)
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