Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

China to U.S. on Currency Revaluation: Drop Dead
AmericanEconomicAlert.org ^ | Monday, November 22, 2004 | Alan Tonelson

Posted on 11/24/2004 8:27:59 AM PST by Willie Green

For education and discussion only. Not for commercial use.

"Working closely with U.S. Treasury officials,.China, according to Governor Zhou of China's People Bank, has made [currency flexibility] a top priority and has made a series of policy moves to liberalize....these are clear signs that the Administration's efforts are paying dividends. A Section 301 action would not assist in these efforts, and indeed could be more damaging than helpful at this time. We therefore must decline to accept the course of action recommended through this latest petition."

~ Nenna Moorjani, U.S. Trade Representative's Spokesperson, November 12, 2004

"I think [currency flexibility] probably needs a couple of years. China is not providing a time frame. We don't know what the time frame will be."

~ Li Ruogu, Deputy Governor, People's Bank of China, November 13, 2004

Sources: "Statement from USTR Spokesperson Neena Moorjani Regarding a Section 301 Petition on China's Currency Regime," The Office of the United States Trade Representative, November 12, 2004;
"China Unlikely to Float Currency Soon, Official Says," by Jill Dutt, The Washington Post, November 13, 2004


TOPICS: Business/Economy; Culture/Society; Editorial; Foreign Affairs; Government
KEYWORDS: china; currency; globalism; thebusheconomy; trade; tradedeficit
Navigation: use the links below to view more comments.
first previous 1-2021-37 last
To: Willie Green

It is a mistaken notion that if the Chinese allowed their currency to float against the dollar that their currency would purchase more dollars.

A true float would include an international contemplation of their banking situation.

It is well known that over half of all Chinese bank loans are non performing. They are functionally bankrupt.

The fact is, their currency would drop dramatically in value against the dollar if they allowed it to float.

They will stay pegged and enjoy the false valuation they currently have for the foreseeable future.


21 posted on 11/24/2004 9:03:05 AM PST by Pylot
[ Post Reply | Private Reply | To 1 | View Replies]

To: Willie Green

Too true. Socialize the cost, privatize the profit.


22 posted on 11/24/2004 9:03:36 AM PST by radicalamericannationalist (The Senate is our new goal: 60 in '06.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: radicalamericannationalist

Smith was what you could call a "conservative." But if you read WON carefully, you'll see he even calls for gov't intervention to smooth out the humps and bumps of capitalism.


23 posted on 11/24/2004 9:07:09 AM PST by durasell (Friends are so alarming, My lover's never charming...)
[ Post Reply | Private Reply | To 18 | View Replies]

To: durasell
I haven't read it but Gertrude Himmelfarb's new book makes that point. It's an interesting fact that today's laissez faire advocates seem to forget.
24 posted on 11/24/2004 9:09:30 AM PST by radicalamericannationalist (The Senate is our new goal: 60 in '06.)
[ Post Reply | Private Reply | To 23 | View Replies]

To: radicalamericannationalist

It's an excellent night stand book. And yes, Himmelfarb is correct in that. People have just linked capitalism/democracy/America so tightly in their thought processes, they forget that each are individual things with their own characteristics


25 posted on 11/24/2004 9:19:15 AM PST by durasell (Friends are so alarming, My lover's never charming...)
[ Post Reply | Private Reply | To 24 | View Replies]

To: Pylot
It is well known that over half of all Chinese bank loans are non performing. They are functionally bankrupt.

Sounds like Dubya has an opportunity for another S&L bailout.

26 posted on 11/24/2004 9:21:56 AM PST by Willie Green
[ Post Reply | Private Reply | To 21 | View Replies]

To: durasell
But if you read WON carefully, you'll see he even calls for gov't intervention to smooth out the humps and bumps of capitalism.

Excerpted and condensed from:

Adam Smith: The Wealth of Nations, Book 4, Chapter 2

Of Restraints upon the Importation from Foreign Countries
of such Goods as can be produced at Home

"There seem, however, to be two cases in which it will generally be advantageous to lay some burden upon foreign for the encouragement of domestic industry...

  • The first is, when some particular sort of industry is necessary for the defence of the country....

  • The second case, in which it will generally be advantageous to lay some burden upon foreign for the encouragement of domestic industry is, when some tax is imposed at home upon the produce of the latter. In this case, it seems reasonable that an equal tax should be imposed upon the like produce of the former....


27 posted on 11/24/2004 9:26:17 AM PST by Willie Green
[ Post Reply | Private Reply | To 23 | View Replies]

To: Willie Green

Good catch...I'm impressed.


28 posted on 11/24/2004 9:28:49 AM PST by durasell (Friends are so alarming, My lover's never charming...)
[ Post Reply | Private Reply | To 27 | View Replies]

To: Willie Green

I've read somewhere that China must float their currency by 2006 in order to retain their membership in the WTO.


29 posted on 11/24/2004 9:51:48 AM PST by LowCountryJoe (Willie Green after a chemical attack would make an excellent selective unmasking candidate.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Willie Green

Post the stuff after the ellipsis, Willie.


30 posted on 11/24/2004 9:54:10 AM PST by LowCountryJoe (Willie Green after a chemical attack would make an excellent selective unmasking candidate.)
[ Post Reply | Private Reply | To 27 | View Replies]

Comment #31 Removed by Moderator

To: Willie Green
"The [capitalists] will furnish credits which will serve us for the support of the Communist Party in their countries and, by supplying us materials and technical equipment which we lack, will restore our military industry necessary for our future attacks against our suppliers."

V.I. Lenin

32 posted on 11/24/2004 10:12:36 AM PST by Fitzcarraldo
[ Post Reply | Private Reply | To 1 | View Replies]

To: Willie Green
http://www.alor.org/Volume7/Vol7No14.htm

April 1971

Newspapers throughout the world are reporting the great "thaw " in relations between China and the outside world, particularly the United States. The pressure is mounting on Australia, with the maximum being extracted over the failure of Australia to sell wheat to Red China. History appears to be about to repeat itself again. Lenin will be vindicated again in his assessment of the "decadent West" and once again the technical and industrial superiority of the western nations is to be made available to prop up the economy of another communist economy. Not that Red China has been without western aid hitherto, but now the floodgates are to be opened.

If the history of the Soviet is examined it will be seen that at various times it was massive injections of aid and trade from the West that stopped certain collapse taking place. Mr. Nixon is about to "recognise" Red China. President Roosevelt nearly 40 years ago was persuaded to recognise the Soviet Union as a means of solving economic problems caused by the great depression in America and at the same time, rescuing the ineffectual Soviet economy. The Soviet at that time badly needed economic blood transfusions just as the Chinese do today.

No Communist system of slavery can deliver the goods to compete with a free enterprise system. Additionally Mr. Nixon is committed to winding up the Vietnam War. A major outlet for the American economy, already in a desperate situation, will be closed off. Another must be found. With other Western nations already scrambling for the Chinese market and Mr. Nixon committed in his own words to "Keynesian economics", Red China offers the greatest potential market for America to continue dissipating, along with other Western nations, their natural and real wealth. It is wonderful what modern education can do.

33 posted on 11/24/2004 10:18:24 AM PST by Fitzcarraldo
[ Post Reply | Private Reply | To 1 | View Replies]

To: Willie Green

Look at the title:

"China to U.S. on Currency Revaluation: Drop Dead"

And look at the comment made by the Deputy Govenor:

"I think [currency flexibility] probably needs a couple of years. China is not providing a time frame. We don't know what the time frame will be."

How did the author, Alan Tonelson, come up with such an inflammatory interpretation of what the Deputy Governor of China had to say?! He (Tonelson) clearly wants to inflame US China relations and take normal disagreements between major trading nations and make them out to be significantly more contentious than they really are.

The anti-China sentiment has clearly taken on a life of its own. One could even say there's a certain tone of political correctness to it.


34 posted on 11/24/2004 11:53:48 AM PST by ponder life
[ Post Reply | Private Reply | To 1 | View Replies]

To: radicalamericannationalist
Yes, I just looked and saw that my sarcasm tag was not included in the post.

Just say NO to sarcasm tags!!! Let em deduce it, reduce it, or just eventually figger it the heck out.
35 posted on 11/24/2004 11:59:02 AM PST by gipper81
[ Post Reply | Private Reply | To 18 | View Replies]

To: ponder life
How did the author, Alan Tonelson, come up with such an inflammatory interpretation of what the Deputy Governor of China had to say?!

Because the Deputy Governor's procrastination came a mere day after the Governor claimed it was a "top priority".
Chinese doubletalk for "Drop Dead".

36 posted on 11/24/2004 12:03:39 PM PST by Willie Green
[ Post Reply | Private Reply | To 34 | View Replies]

To: gipper81

Sometimes necessary, lest you have to deal with the constant yipping of the not-so-smart-a**es.


37 posted on 11/24/2004 4:36:08 PM PST by radicalamericannationalist (The Senate is our new goal: 60 in '06.)
[ Post Reply | Private Reply | To 35 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-37 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson