Posted on 02/03/2005 4:05:57 PM PST by eluminate
1) The currency of the People's Republic of China , known as the yuan or renminbi, is artificially pegged at a level significantly below its market value. Economists estimate the yuan to be undervalued by between 15 percent and 40 percent or an average of 27.5 percent.
(2) The undervaluation of the yuan provides the People's Republic of China with a significant trade advantage by making exports less expensive for foreign consumers and by making foreign products more expensive for Chinese consumers. The effective result is a significant subsidization of China's exports and a virtual tariff on foreign imports.
(3) The Government of the People's Republic of China has intervened in the foreign exchange markets to hold the value of the yuan within an artificial trading range. China's foreign reserves are estimated to be over $609,900,000,000 as of January 12, 2004, and have increased by over $206,700,000,000 in the last 12 months.
(4) China's undervalued currency, China's trade advantage from that undervaluation, and the Chinese Government's intervention in the value of its currency violates the spirit and letter of the world trading system of which the People's Republic of China is now a member.
(1) IN GENERAL- Notwithstanding the provisions of title I of Public Law 106-286 (19 U.S.C. 2431 note), on and after the date that is 180 days after the date of enactment of this Act, unless a certification described in paragraph (2) has been made to Congress, in addition to any other duty, there shall be imposed a rate of duty of 27.5 percent ad valorem on any article that is the growth, product, or manufacture of the People's Republic of China , imported directly or indirectly into the United States.
(WRITE TO YOUR CONGRESSMAN AND ASK HIM TO SUPPORT THE BILL!)
(Excerpt) Read more at thomas.loc.gov ...
(write to your Congressman and ask him to support the bill!)
It's about time that they crack down on this. China's currency issues aren't just bad for us, they're bad for everyone.
... well, except China...
thought I should have pointed that out before someone else did.
I'm pretty sure China is in the process of un-pegging right now.
I could have sworn some Chinese economist was talking down the dollar.
They are holding billions of our treasuries, and buying more all the time. Have you heard of the expression "over a barrel"?
I could have sworn some Chinese economist was talking down the dollar.
Alternate explanation of that economist talking down the dollar (considering that unpegging requires a law change in China, not some economist talking down the currency the yuan's pegged to) - China needs a weak dollar/yuan in order to crack the European Union nad Asian markets (even though the ChiComs have a massive trade surplus with us, they have an even larger trade deficit with the rest of the world).
i noticed the bill got 13 co - sponsors so people need to get more of those congresmen in line and force them to back it as well...
D'oh. Kindly substitute "and" for "nad" (I knew I shouldn't checked the "do not preview" box :-)
Yeah, I thought about the alternate explanation, too, but his talking was more like, "we're getting rid of the peg because forcing down the dollar is costing us too in domestic inflation."
I'm going home, but I'll hunt for the link tomorrow.
Let's look at what's really happening. They are sending us goods in return for our money. They then give the money back to us in return for promises to pay later.
They are in essence giving us the goods for nothing. A promise to pay later from a powerful sovereign government is not worth much, especially if the debt is denominated in the debtor's currency.
They are in essence giving us the goods for nothing. A promise to pay later from a powerful sovereign government is not worth much, especially if the debt is denominated in the debtor's currency.
Do you really want the US Treasury to go down the road of defaulting on debt? One of the main reasons why the US economy is respected (and other countries' economies aren't) is because the feds have never defaulted on a debt.
How bout doing something radical?
Go back to the gold standard and give our currency intrinsic value...making it it's HOLD purchasing power regardless of what the idiots in Washington (or any other country) do.
If you believe that, can I have your old Gold Certificates at $20 per ounce?
The "feds" have defaulted on 95% of the value of the original US dollar.
"Inflation" is different from "default".
BTW, let me guess that you two have significant gold holdings and are looking for a guaranteed rate of return that beats inflation.
No, I'm just looking for an honest money system. Relying on paper money backed by nothing but DEBT and the promises of bureaucrats is not a good thing. If we could give our currency real value, everyone would feel a little more secure.
the head of the ECB is talking about it too - challenging china at the upcoming G7 meeting to float. momentum is building on this, we must break them.
Certainly not. We owe you a billion dollars, Mr. Wong, and we have credited a billion dollars to your account.
Would you like to look at some nice investments? OK, a representative from Hookem and Crookem will be right with you. He has some very attractive contingency derivative notes issued by top corporations in their offshore booking locations....
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