Posted on 09/14/2010 1:44:53 PM PDT by bruinbirdman
A State Council think-tank in China has warned Washington that the US will come off worst in a trade war if it imposes sanctions against Beijing over the two nations' currency spat.
Ding Yifan, a policy guru at the Development Research Centre, said China could respond by selling holdings of US debt, estimated at over $1.5 trillion (£963bn). This would trigger a rise in US interest rates. His comments at a forum in Beijing follow a string of remarks by Chinese officials questioning US credit-worthiness and the reliability of the dollar.
China's authorities seem split over how to respond to moves on Capitol Hill for legislation to punish Beijing for holding down the yuan. The central bank has ruled out use of its "nuclear weapon", insisting that it would not exploit its $2.45 trillion of foreign reserves for political purposes. "The US Treasury market is a very important market for China," it said.
However, the mood is hardening on both sides of the Pacific. The dispute risks escalating if China's trade surplus with the US climbs further and more US jobs are lost. US Treasury Secretary Tim Geithner, who has taken a softly-softly line in the past, said on Friday that China had done "very little" to correct the undervaluation of the yuan since ending the dollar peg in June.
Mr Ding reflects thinking among some in the Poltiburo, who seem convinced that the US is in decline and that China's rise as an exporter of goods and capital give it the upper hand.
"They are utterly wrong," said Gabriel Stein from Lombard Street Research. "The lesson of the 1930s is that surplus countries with structurally weak domestic demand come off worst in a trade war."
He described the implicit threat to sell Treasuries as "empty
(Excerpt) Read more at telegraph.co.uk ...
Pick another one. What if we only used more expensive steel? Just benefits, no losses?
Besides, from what I've seen most Freepers wish we WOULD drill here.
By all means, we should. Our oil would still be more expensive if we excluded all imports.
Assuming that's correct over the long haul, those costs would go back into OUR economy, not out of the country.
The millions of unemployed, because oil tripled (or more) in price won't be thrilled with your idea.
And how did shipping our jobs overseas help American workers.
I already said I'd like business taxes to be cut, to 0% in a perfect world.
I leave this question for the "drill here" supporters to answer.
I'm sure the drill here supporters don't agree with your idea to just use much more expensive US oil exclusively.
That, and if they didn't like you (not in my case) they'd throw nuts and bolts at you when you weren't looking . . . and don't get me started on my asshat boss who wanted me to cross their picket line when they went on strike.
We're using more and more cheaper foreign steel and closing American mills. The readers of this thread can judge for themselves how that has worked out.
The millions of unemployed, because oil tripled (or more) in price won't be thrilled with your idea.
My idea is to develop renewable energy. I agree that it's not feasible on a large scale at present (IOW, I'm not a greenie), but the technology will get better in time.
I already said I'd like business taxes to be cut, to 0% in a perfect world.
And I agreed.
When that happens, you'll be the first to know.
In other words, you can’t answer . . . and you clearly feel more comfortable spending money that does not belong to you.
I can see that my willingness to buy American really offends you. Tell you what, after I let you know when I start to squeal, I’ll include an apology for this offense.
Although Nucor has said it prefers Louisiana over a competing site in Brazil, CEO Dan DiMicco has said the company is waiting on possible global warming legislation in Congress, including a cap-and-trade system on emissions. DiMicco said in May that cap-and-trade would make the Louisiana site economically impossible.How's that working out for us? Surely we can spend 50 cents more for steel in order to save our environment.
Nucor: Steel business is slowing, profit falling, September 14, 2010.
And I don't support the government forcing it on us over this bogus global warming/climate change "science".
Yes, and you appear to be unaware of the Law of Unintended Consequences. Are you willing to admit that making U.S. products more expensive has a consequence, or not?
Now let me ask you something. How do you feel about all of this technology being exported to China so that you can buy a computer for less?
You are still dodging the point. Stop being such a n00b.
The Chinese have other markets they can go to... And, the Russians and Europeans are a willing market.
In sum, the minus exceeds the plus . . . holding to your talking points won't change it.
feh...
Yes, but we have tens of millions of useless people who can't, or won't be retrained. They need to go away -- die or something -- instead of voting, or rioting and whatnot.
Source?
The trade war is pretty much inevitable, BTW. A few in our midst would like to put it off, though, until the costs will be highest.
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