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China Currency Law 'imperative — Us Lawmakers Should Act On Legislation Retaliating Against Beijing's Alleged Currency Manip

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http://www.google.co...56c69831f72.751

WASHINGTON — US lawmakers should act on legislation retaliating against Beijing's alleged currency manipulation, a key US senator said after a week-long trip to China.

"Confronting this issue is an economic imperative," Democratic Senator Chuck Schumer said in a statement that noted he met last week with People's Bank of China Governor Zhou Xiaochuan.

"I am more convinced than ever that legislation is needed to force countries like China that manipulate their currencies to play by the rules and let their currencies freely float," said Schumer.

US lawmakers charge Beijing keeps its currency -- and thereby its exports -- artificially cheap, hurting their US competitors at a time of deep US worries about historically high unemployment.

"In our meeting last week, Governor Zhou repeatedly sought to portray the yuan's recent gains against the dollar as adequate even though more aggressive appreciation is clearly needed. I made clear to him that this would leave the US Congress with no choice but to respond," said Schumer.

Washington has raised the pressure on Beijing to float its currency to help address the yawning US trade deficit with what is now the world's second largest economy.

Problem is will they do it this time?

Edited by crash2006

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Maybe this is indicative of the increasing realisation that US trade needs to be managed. They've sold the idea that they operate in a free market. They don't. That illusion is only bought into by the US public. The US government, the banks, the Chinese all know the free trade concept is just one way. The Chinese already overtly manage their external trade to their own advantage and the currency manipulation is just one facet of it. My hope is that gradual mutually agreed changes to the way trade is managed are introduced. Otherwise we end up with sudden populist knee-jerk tariffs and at best a new cold war and at worst some kind of conflict.

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Maybe this is indicative of the increasing realisation that US trade needs to be managed. They've sold the idea that they operate in a free market. They don't. That illusion is only bought into by the US public. The US government, the banks, the Chinese all know the free trade concept is just one way. The Chinese already overtly manage their external trade to their own advantage and the currency manipulation is just one facet of it. My hope is that gradual mutually agreed changes to the way trade is managed are introduced. Otherwise we end up with sudden populist knee-jerk tariffs and at best a new cold war and at worst some kind of conflict.

currency manipulation? how do you define that.

fixed exchange rates? the euro is a fixed exchange rate.

are fixed exchange rate not allowed anymore? the UK was in a fixed exchange rate up until 1992 when we were forced out of the ERM.

the whole world used fixed exchange rates up until 1971 under the gold standard.

who benefitted the most under this? - america. they had a far stronger economy than the rest of the world but their exchange rates were fixed.

the only way to fix exchange rate ( and keep it relatively weak like china) is to print money.

so its a bit rich to consider printing money to keep exchange rates fixed as "currency manipulation" when the US has just printed $3 trillion in 3 years.

talk about the pot calling the kettle black.

Edited by mfp123

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Hypocrites, the US (the Fed and the big US banks) are the biggest market manipulators (not just of currencies) of them all.

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Hypocrites, the US (the Fed and the big US banks) are the biggest market manipulators (not just of currencies) of them all.

the only real problem america has with china is that in order to keep exchange rates fixed, china has been printing yuan at a similar rate the US is printing dollars to keep the exchange rate fixed - and the US doesnt like it.

Edited by mfp123

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the only real problem america has with china is that in order to keep exchange rates fixed, china has been printing yuan at a similar rate the US is printing dollars to keep the exchange rate fixed - and the US doesnt like it.

The US (i.e. the powerful) don't really care, they only care about shifting the blame abroad, so they look good in front of their voters at the next election.

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The US (i.e. the powerful) don't really care, they only care about shifting the blame abroad, so they look good in front of their voters at the next election.

this is absolutely true when you examine the economics of it all - its done purely to shift blame of whats gone on.

the reality is that the free market takes care of fixed exchange rates via inflation.

as an example: lets take a fixed exchange rate of $1: 7 yuan

so a t-shirt in china priced at 7 yuan costs you $1 to buy.

but china is experiencing massive inflation. lets say its 10%. so that t-shirt now costs 7.7 yuan.

in economics, under a floating rate, technically, the yuan should depreciate to $1 : 7.7 yuan to maintain parity.

but china has fixed rates at $1:7 yuan.

so that 7.7 yuan t-shirt now costs you $1.1 to buy.

that 10% inflation is an effective exchange rate increase of 10% becuase that t-shirt now costs you 10% more to buy.

the free market sorts itself out - which is why its just smoke and mirrors by poiticians of blaming someone else.

Edited by mfp123

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Hypocrites, the US (the Fed and the big US banks) are the biggest market manipulators (not just of currencies) of them all.

This is all distraction from US currency manipulation and the weakening of the dollar.

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this is absolutely true when you examine the economics of it all - its done purely to shift blame of whats gone on.

the reality is that the free market takes care of fixed exchange rates via inflation.

as an example: lets take a fixed exchange rate of $1: 7 yuan

so a t-shirt in china priced at 7 yuan costs you $1 to buy.

but china is experiencing massive inflation. lets say its 10%. so that t-shirt now costs 7.7 yuan.

in economics, under a floating rate, technically, the yuan should depreciate to $1 : 7.7 yuan to maintain parity.

but china has fixed rates at $1:7 yuan.

so that 7.7 yuan t-shirt now costs you $1.1 to buy.

that 10% inflation is an effective exchange rate increase of 10% becuase that t-shirt now costs you 10% more to buy.

the free market sorts itself out - which is why its just smoke and mirrors by poiticians of blaming someone else.

Yeah, unless some central banker in the US devalues the dollar by 10% as well - in whch case the T shirt costs the same but is made by slaves in worse conditions than previously and/or out of a cheaper material and/or some factory shuts somewhere and there are no T shirts.

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The US (i.e. the powerful) don't really care, they only care about shifting the blame abroad, so they look good in front of their voters at the next election.

ah the old "its always someone else's fault" card.

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This is all distraction from US currency manipulation and the weakening of the dollar.

Spot on. It is ludicrous for the USA to accuse others of currency manipulation when they are the arch currency manipulators themselves.

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the only real problem america has with china is that in order to keep exchange rates fixed, china has been printing yuan at a similar rate the US is printing dollars to keep the exchange rate fixed - and the US doesnt like it.

Is that how a fixed exchange rate is implemented? Or are you just spouting off?

Seriously, I want to know.

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Is that how a fixed exchange rate is implemented? Or are you just spouting off?

Seriously, I want to know.

yes, the chinese government would need to sell yuan and buy up the dollars, to maintain that 1:7 exchange rate, which it achieves by printing money.

what happens when you print too much money - you get inflation.

so in the end the free market balances itself out.

inflation is what will cause china to increase the value of its currency naturally. not peer pressure.

Edited by mfp123

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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