America threatens trade war with China

America threatens trade war with China

www.telegraph.co.uk

The United States government is planning to revive a bill that will punish China for artificially boosting its trade through "currency manipulation".

Members of the US Senate and Congress believe that China deliberately undervalues its currency by as much as 40 per cent so that Chinese goods remain cheap to foreign buyers.

The bill is likely to be introduced today by senators and congressmen from both the Republican and Democratic parties.

(visit the link for the full news article)

If the currency manipulation by China is true then this bill should get passed and we must act against them to save millions of jobs. We must impose additional duties on Chinese product until they stops undervaluing their currency.

Let us hope the Chinese will take it in the right sense and would come out with a fair trade policies.

www.telegraph.co.uk
(visit the link for the full news article)

The way this sounds to me, its pretty simple really.

Dealer one(USA) has a bag of sugar at the price of $50.
Dealer two(China) has a bag of sugar at the price of $45.
Dealer one gets mad at dealer two for selling cheaper goods to stay in buisness while driving dealer one in the dirt.
So Dealer One wages war on Dealer Two to keep the Market fair.
Makes sense to me.

If I am way off on this, hip me to the game.

maybe some body shouldn't have over priced their own goods, aye?

reply to post by spearhead


Its not overpricing goods, its underpricing them to keep control of the market.
Thats how wars get started =)

Originally posted by Common Good
The way this sounds to me, its pretty simple really.

Dealer one(USA) has a bag of sugar at the price of $50.
Dealer two(China) has a bag of sugar at the price of $45.
Dealer one gets mad at dealer two for selling cheaper goods to stay in buisness while driving dealer one in the dirt.
So Dealer One wages war on Dealer Two to keep the Market fair.
Makes sense to me.

If I am way off on this, hip me to the game.

Dealer one(USA) has a bag of sugar at the price of $50.
Dealer two has a bag of sugar at the price of $45.
Dealer three as a bag of sugar at the price of $40.
Dealer four(China) has a bag of sugar at the price of $35.

So Dealer One wages war on Dealer Four to keep the Market fair.

Still make sense?

I have always seen a big war of power between the US, and China, Just have the feeling, (which I know is right), this I believe is the first step.

You don't question the practices of the person who loans you the most amount of money, they virtually own the USA.

Call me foolish, but I believe this is the start of a long process.

Just looks like someone's pouting that they don't get it all their own way, to me.

Originally posted by Enceladus


If the currency manipulation by China is true then this bill should get passed and we must act against them to save millions of jobs. We must impose additional duties on Chinese product until they stops undervaluing their currency.

Why?

Let us hope the Chinese will take it in the right sense and would come out with a fair trade policies.

I just don't get this story.. So china is undervaluing it's currency, so what? Isn't that part of "free trade?"

Step 1 China undervalues currency
Step 2 China Gets overpaid (theoretically) on everything it sells
Step 3 Profit

What a mind bogglingly complex scheme. I don't know if I believe it or not. Sounds fishy.

The USA is is no position to be threatening China with anything. It wouldn't be the USA threatening China, it would be the NWO cabal threatening China. Just stirring up more shyte, that's the forte of the Rothschild cabal.

[edit on 13-5-2009 by Albertarocks]

the discrepancy of prices between chinese goods and foreigners' is determined by the relative advantage as a result of scale production and china's advantageous position in the world-wide industry distribution.

why american always blinks the reality while resorts to political ways to coerce others to behavior in line with american will?

cant be more ridiculous!

Originally posted by Enceladus
If the currency manipulation by China is true

Rhetorical question ?


China has been cheating with its monetary policy for years. All the other major world currencies like the dollar, yen, or euro are valued by world currency markets. Until very recently, the yuan was pegged to the value of the dollar. China let up a bit, allowing the value of the yuan to float in a narrow band, but it's still undervalued.

Kaytagg, a news article won't explain macroeconomic theory. If this story is over your head, start by googling chinese monetary policy and the undervalued yuan.



[edit on 13-5-2009 by Schaden]

america should just put if its tarrifs to compensate, but i guess theyll just sell cheap stuff to europe and the rest of asia... hmm, china doesn't work off a free market cpalist system anyway... interesting

OK, I don't understand at all.

So how does this underpricing work, shouldn't we be doing it.

So lets model it and see.

It costs me 50 bucks to produce a sack of rice.

I want to sell it in your market, your market has a price of 80 bucks.

So I manipulate the value of my currency undervaluing it, I trade 100 of my bucks for 80 of yours in the exchange rate if I were doing the buying.
Enough for the bag deal.

Now I sell you the bag at 80 of your bucks which is really 100 of my bucks.

If I had not undervalued my dollars lets say they are equal value, I sell the rice for 80 bucks, but it has the same value to me 80 bucks.

This is where I don't understand anything, because no matter how much I sell the bag for, It's worth the same thing to me in a relative scale.

I scale up, I scale down, I always come out with 80 bucks US, convertable to N bucks Chinese.

Help me out here, where do the Chinese pull the bunny out of the hat and have it for lunch?

Where I live, if you sell things for less than they are worth, you go out of business, likewise if you buy them for more than they are worth, you go broke. This is a simple rule I use when I need to buy something, It keeps me from going to buy a cow and coming home with a handful of magic beans.

[edit on 13-5-2009 by Cyberbian]

So what is it that the US can make now that it can produce cheaper than China?

low dollar value is good for exports but not for imports.

[edit on 13-5-2009 by munkey66]

reply to post by munkey66


BS propaganda about manipulating dollar values for fun and profit, thats our new export.

That seems like what's happening here to me.

If they can produce cheeper, than it is in our interest to buy from them, as long as the quality justifys the purchase. However that seems like a loosers bet. They are poisoning each other like a termite infestation.
And us too if we let them.

[edit on 13-5-2009 by Cyberbian]

If it's so good, lets lower the value of the dollar.

It's called inflation.

We can all share the benefit of being able to sell to China abundantly for half as much, and make half the profit on everything we manufacture. Then we can live on half the income!

Yipee, were reaping the benefits for currency manipulation!

Did I mention you won't actually get half the income, sorry expenses, but the 10% cost of good that goes to your salary will be worth about 2 percent, so you will get about 20% of your current income! But you won't be able to buy much for that, Those Chinese goods are expensive, look at the exchange rate! Phew.

[edit on 13-5-2009 by Cyberbian]

Aren't WE manipulating the value of OUR currency by deflating its value by printing up huge piles of it lately? Every time they do this, the feds are ripping YOU and everyone off by devaluing all your hard earned savings.

And, how are higher prices on the things we must import suppose to be good for us, the consumers? We don't make televisions, so by increasing their cost by adding huge tariffs, just how is that suppose to balance out the playing field when there are no made in America competing products?

And, are we going to have to swallow these higher prices on imports along with that up coming double digit inflation, because we've manipulated our currency by devaluing its value in order to make the cost of all that foreign debt seem cheaper when we eventually get around to paying it back?

And, I thought this new administration as all for free trade and anti-protectionism? What gives?

This all sounds pretty hypocritical to me, in light of the fact we too are guilty of manipulating our currency in order to reduce the cost of all that foreign held debt. By the time we ever get around to paying all that foreign debt off, those dollars will be worth FAR LESS than they were worth when borrowed.

Man, what a load of horse manure. I think we need to stage an income tax revolt. Everyone should change their deductions to 10 tomorrow.

I'm with you cantankerous. But it's worse than that. In the desperation to produce for less, they look for substituting chemicals for protein in your baby's formula, and substituting antifreeze for cough syrup, hey they're both sweet!

We really only have the markets to blame for this. I mean on those 'indexes' and etc, im being told that the china currency is lower than the americano (US), and when ordering online, with a quick calculation ive worked out that I get the same thing, for less from china.

Obviously trade war sounds a bit far fetched.... (Im from Australia), but honestly im not sure why, but nothing from America surprises me now. Maybe ATS did that to me or ive been listening to too much nonsense?

Anyway from what ive been told they earn MUCH less than what their paid in the USA. So its no real surprise that the big companies prefer to employ the same skill for much less price.