Posted on 09/22/2010 2:57:07 PM PDT by Lucky9teen
WASHINGTON (Reuters) - Democratic leaders in the House of Representatives announced plans on Wednesday to pass a bill to give the Obama administration new tools to protect U.S. companies and workers from China's "undervalued" currency.
The decision to move a bill to pressure China to let its yuan currency appreciate against the U.S. dollar comes just one day before President Barack Obama is due to meet with Chinese Premier Wen Jiabao in New York.
Obama said on Monday that China had not done enough to raise the value of the yuan, keeping up Washington's tough rhetoric on Chinese policy as U.S. lawmakers planned legislation to punish Beijing.
"It is time for Congress to pass legislation that will give the administration leverage in its bilateral and multilateral negotiations with the Chinese government," House Speaker Nancy Pelosi said in a statement after a House panel said it would act on a China currency bill on Friday.
"If China allowed its currency to respond to market forces, it could create a million U.S. manufacturing jobs and cut our trade deficit with China by $100 billion a year, with no cost to the U.S. Treasury," Pelosi said.
Prospects for action in the Senate, which would also have to approve legislation, is uncertain. Key senators have said time may be too tight since lawmakers hope to leave Washington in just a few weeks to campaign ahead of November elections.
China's central bank said in June it would loosen a peg against the dollar and let the yuan fluctuate more freely. Since then it has risen 1.8 percent against the dollar.
Critics in Congress say China deliberately undervalues its currency by as much as 25 percent to 40 percent to give Chinese companies an unfair trade advantage.
(Excerpt) Read more at reuters.com ...
They should be careful what they ask for. China could decide to do it. There would be a rather long period between the crash of the dollar and the time anyone chose to risk doing any manufacturing here. Who would invest in this new manufacturing and with what?
Their imports should also me taxed to penalize them for their slave wages!
I suppose that the Obamatons have gotten tired of blaming everything on Bush.
In the meantime, they do everything they can to create an atmosphere conducive to the devaluation of the U.S. Dollar.
Higher taxes! For everyone!
I suppose that Pelosi and Lil Timmy have gotten the word that the Chicoms have tired of financing their perpetual deficits. Now, like a typical deadbeat borrower, they are figuring out ways to evade repayment. Devaluation of the dollar vis-a-vis the RMB effectively reduces real value of US national indebtedness to the Chicoms. Like Pelosi says, this will happen “at no cost to the Treasury” ... that is, no cost besides another permanent stain on America’s already dubious reputation for economic sanity and stability.
China owns around $2 trillion of our worthless Treasury bonds and our Dear Leader is going to try and strongarm them into making their currency value increase? He’s as clueless as a 2 year old poking at a sleeping pit bull.
China should not have permanent most favored nation status and the WTO should not judge our trade policies.
So if the Chinese Yen goes up in value wouldn’t we owe them more $$$?
Yup, and China has purchased loads of gold. So much so that they intend to use it as a means of trade with OTHER countries.
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