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 ...
Whatever happened to non-screaming titles?
Yes, but in the process US industrial base is being dismantled and sent to China.
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.
Yes, but when USA defaults, China will have the production base and technology.
china will not budge. its time to start moving to repeal MFN for China:
http://www.bloomberg.com/apps/news?pid=10000085&sid=apHjcmFIRmoQ&refer=europe
they want to fight, I say bring it on:
http://www.bloomberg.com/apps/news?pid=10000085&sid=apHjcmFIRmoQ&refer=europe
which is of course what they want. their dollars are just a number in some bank account, they can set it equal to zero, while they gaze out over their control of the worlds semiconductor industry for example.
Cool. I'm gonna buy yuan and write my congressman!
That is not, however, saying that the current system is anywhere near perfect. George Soros is Exhibit A in that (using factors that really shouldn't enter the currency equation to short the dollar). Then again, he could have done much the same thing if the gold standard had existed.
Let me guess the representative's name; Dewey Flecem Andow.
Nice post. A gold standard gives the politicians an extra way to game the system, just as they did in the late 60's and early 70's under the Bretton Woods gold standard.
He must have been the same guy who sold Rockefeller Center to the Japanese for five billion. We sure took them to the cleaners on that one.
You can buy a lot of cars and VCRS for five billion.
The debtor doesn't necessarily fail. Imagine you bought a house with a 6% mortgage and hyperinflation hits at 18% who is loosing the money? the lender... Who is more likely to go broke in this scenario? In the case of US and china the situation is more like the home builder who spent money on raw materials which ate up his margins but you got a bargain house because he really needs to sell it so he could hold the paper and balance his costs with the mortgage payments... Now imagine if the costs exceed them he is in a dark and painful place especially if he has to convert your payment and the currency you are paying is falling in decline in relation to the currency he spent on the building of the house and raw material aquisition...
Rome had to import grain to feed itself and had no infrastructure that dealt with social problems ergo 25% citizenry in italy itself with rest being slaves or non citizens whom helped destroy it indirectly mostly.
the lender cannot call your mortgage if you are up to date ... and in reality would have no legal authority to do so... The treasuries that chinese hold have no provision for them to cash out until maturity... They are obligation under the US gov law not chinese law ergo the lender has to abide by the laws of the debtor in this case.
the lender cannot call your mortgage if you are up to date ... and in reality would have no legal authority to do so... The treasuries that chinese hold have no provision for them to cash out until maturity... They are obligation under the US gov law not chinese law ergo the lender has to abide by the laws of the debtor in this case.
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