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oh, in that case i stand corrected from my wrong interpretation. mes excuses les plus sincères.
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"Ceterum censeo Ben esse expellendum." -
The Senate has a > 2/3rd majority to put a 25% tarrif on Chinese goods unless it revalues its currency. I was surprised that the votes are there for this, but they are. Southern conservative interests (textiles, etc.) are all for this, which is among the cross-currents to which I was alluding.China is stubbornly reluctant to revalue the yuan under the pressure of the US, as if they were authorized to make their own decisions on that kind of problems. But it seems that, if they are not authorized, they have the power to refuse to revalue for the only reason that the US have a trade imbalance : they say so and they dont revalue, at least during the last 3 or 4 years. They will likely revalue in the future for meeting their own interests and at a date convenient for them.
I would not call that a cross-current.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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The Senate of the US will be surprised to learn that the imports of Chinese textile have not been decided by China but by American companies; these companies will increase their sale price to cover the tarrif, and probably will shift some orders from China to other asian producers who have no tarrif on imports in the US. The end result of the cross-current will be a small amount of inflation, and almost no reduction of the trade imbalance.Originally posted by DanS
The Senate has a > 2/3rd majority to put a 25% tarrif on Chinese goods unless it revalues its currency. I was surprised that the votes are there for this, but they are. Southern conservative interests (textiles, etc.) are all for this, which is among the cross-currents to which I was alluding.
The US are still living on the idea that the dollar was their currency and our problem; this is no longer true : China is not willing to pay for the problems you have with the dollar.Statistical anomaly.
The only thing necessary for the triumph of evil is for good men to do nothing.Comment
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The Senate of the US will be surprised to learn that the imports of Chinese textile have not been decided by China but by American companies; these companies will increase their sale price to cover the tarrif, and probably will shift some orders from China to other asian producers who have no tarrif on imports in the US. The end result of the cross-current will be a small amount of inflation, and almost no reduction of the trade imbalance.
"Everything for the State, nothing against the State, nothing outside the State" - Benito MussoliniComment
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its costing china too much to maintain the peg, within 5 years they will have to drop it. no need to take lou dobbs-protectionist policies. two wrongs dont make a right."Everything for the State, nothing against the State, nothing outside the State" - Benito MussoliniComment
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We'll see what China is willing to do. Personally, I'm not sympathetic to the protectionist line of thinking and not really sympathetic to our manufacturers...I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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i agree. they should get off their lazy butts and start working. and if they cant make it because cost of living is too high, then thats a good thing. it means that we have progressed past that stage of industrialization/ modernization, and they should ride quietly into the sunset.Personally, I'm not sympathetic to the protectionist line of thinking and not really sympathetic to our manufacturers...
"Everything for the State, nothing against the State, nothing outside the State" - Benito MussoliniComment
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KH FOR OWNER!
ASHER FOR CEO!!
GUYNEMER FOR OT MOD!!!Comment
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They are working very hard but, short of a big new tarrif (bad for consumers), there simply is no way for for US textile companies to compete on a cost basis with Asian producers. I doubt currency changes would change that reality.
We would sell more goods to China though if they let their currency float instead of pegged. There's no point in maintaining the peg other then to screw the foreigners so that shouldn't be allowed to stand.Try http://wordforge.net/index.php for discussion and debate.Comment
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the peg actually makes their stuff look cheaper, so it makes foreigners more likely to invest in there, and easier to export, but it also means that the US rings up a huge current account deficit with China to the tune of $120 bn a year.We would sell more goods to China though if they let their currency float instead of pegged. There's no point in maintaining the peg other then to screw the foreigners so that shouldn't be allowed to stand."Everything for the State, nothing against the State, nothing outside the State" - Benito MussoliniComment
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We need another Plaza Accord...KH FOR OWNER!
ASHER FOR CEO!!
GUYNEMER FOR OT MOD!!!Comment
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The peg screws over chinese consumers. But chinese industrialists are way more important than regular consumers, so........
Why do they call themselves communists again?????“It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”
― C.S. Lewis, The Abolition of ManComment
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The plaza accord was good at encouraging the Japanese to 'hollow' out their domestic industry and relocate to SE Asia.Originally posted by Drake Tungsten
We need another Plaza Accord...
A similar policy will likely encourage Chinese outward FDI... create some unemployment in the export processing areas...
Floating China's rate could mean more US produce is exported ... but surely not as much as US firms produce within China itself thanks to low labour costs and favourable export conditions (thanks to the peg).Comment
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Yes, in and of itself floating the currency won't balance things but it will let currencies fluctuate with real economic demand and it will end the very real economically distorting effects China's artificially low currency has created.Try http://wordforge.net/index.php for discussion and debate.Comment
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and would create an economic boom in the US (more GDP, more jobs)"Everything for the State, nothing against the State, nothing outside the State" - Benito MussoliniComment
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