A new (badly needed) teacher for the US : China

[Dinner]

Originally posted by Urban Ranger
The US also had (probably still has) a large trade deficit with Japan. Thus, this does not appear to be a cause of trade deficits.

EARTH TO UR! EARTH TO UR! COME IN PLEASE!

As stated earlier the reason for the deficits is the US's free trade policies and we are willing to accept deficits as long as the trade is free and fair. Rigging rules to preditorially devalue your currency is neither free nor fair. We are attempting to solve this very large problem which we have with the policies of the Chinese government. No one is claiming it wll end trade deficits but it will end a very large trade abuse therefor it is worth exposing.

I don't see anything unfair about the trade policies.

Then you my friend live in la-la land. It is a preditory policy designed to increase employment in the PRC at the cost of jobs in China's trading partners. We want the market to decide valuations not the Chinese government and if the Chinese don't comply then we have option of correcting the policy visa via a very large tarrif.

How much is the Chinese trade deficit account for the US current deficit?

Around 40% of the total and the single largest component. The second largest is oil with around 25% of the total.

http://www.marktaw.com/culture_and_media/TheUSTradeDeficit.html

[DanS]

That's fine. We demand their currecy be allowed to float or else we will slap a 27% tarrif on all Chinese made goods. They can either comply or not comply.

I don't agree with idea of a tarrif in principle, but wouldn't have anything against it as a matter of taking a shot across their bow.

[Flip McWho]

Then you my friend live in la-la land. It is a preditory policy designed to increase employment in the PRC at the cost of jobs in China's trading partners. We want the market to decide valuations not the Chinese government and if the Chinese don't comply then we have option of correcting the policy visa via a very large tarrif.

Isn't this very similar to just subsidising your own industries so they compete better against international competition?

[Agathon]

Pressurizing

Why don't business writers like the English language?

[DAVOUT]

Originally posted by Agathon

Pressurizing

Why don't business writers like the English language?

Good question; in fact if you want to make some pressure on somebody (Chinese or others non-american), the threat of depressurization could also be contemplated.

[Whoha]

Re: A new (badly needed) teacher for the US : China

Originally posted by DAVOUT


I could not find any error in this lesson.

The Real lesson is that we need to model our behavior towards them as the behavior they have towards us.

[Whoha]

Originally posted by Urban Ranger


The US also had (probably still has) a large trade deficit with Japan. Thus, this does not appear to be a cause of trade deficits.

How much is the Chinese trade deficit account for the US current deficit?

correct on the first part, and Chinese trade is 1/6th of our total deficit.