Posted on 09/14/2010 1:44:53 PM PDT by bruinbirdman
A State Council think-tank in China has warned Washington that the US will come off worst in a trade war if it imposes sanctions against Beijing over the two nations' currency spat.
Ding Yifan, a policy guru at the Development Research Centre, said China could respond by selling holdings of US debt, estimated at over $1.5 trillion (£963bn). This would trigger a rise in US interest rates. His comments at a forum in Beijing follow a string of remarks by Chinese officials questioning US credit-worthiness and the reliability of the dollar.
China's authorities seem split over how to respond to moves on Capitol Hill for legislation to punish Beijing for holding down the yuan. The central bank has ruled out use of its "nuclear weapon", insisting that it would not exploit its $2.45 trillion of foreign reserves for political purposes. "The US Treasury market is a very important market for China," it said.
However, the mood is hardening on both sides of the Pacific. The dispute risks escalating if China's trade surplus with the US climbs further and more US jobs are lost. US Treasury Secretary Tim Geithner, who has taken a softly-softly line in the past, said on Friday that China had done "very little" to correct the undervaluation of the yuan since ending the dollar peg in June.
Mr Ding reflects thinking among some in the Poltiburo, who seem convinced that the US is in decline and that China's rise as an exporter of goods and capital give it the upper hand.
"They are utterly wrong," said Gabriel Stein from Lombard Street Research. "The lesson of the 1930s is that surplus countries with structurally weak domestic demand come off worst in a trade war."
He described the implicit threat to sell Treasuries as "empty
(Excerpt) Read more at telegraph.co.uk ...
It wasn’t that long ago Walmart’s main selling point was Made in America. That sort of died out over time. But it used to be plastered all over their stores when Sam Walton was still alive, bannered in red, white and blue.
I will say that a lot of the products made in China are made like sh!t and have to be replaced faster.
Last years news...sorry...wouldn’t know where to begin to look now...but it was when Hillary and Geitner and their crew made their second trip to China....about the time China was telling the Washington to watch their spending.
Lowering the corporate tax rate to 0% on those items that are made here from 100% US parts would cause an explosion of manufacturing and higher end jobs here in the US.
Which is why Congress will never let it happen.
And how are you going to implement this --- via tariffs? And what about TV sets, given that none is produced in the U.S. for decades?
Trade wars are not football. THe last time we did that (1929), we lost.
How many of our jobs are dependent on overseas trade?
Is Yours?
Out of my family, 1 out of 10 has a job dependent on overseas trade. The rest of us are in education or technology.
And if someone opened a factory, she could easily get a job there with her skills.
So I see NO downside other then a short period of adjustment.
And how are they going to take the land? Invade us? LOL... get real.
So I’ll just go ahead and guess that the story is BS.
I remember when going to a Ponderosa Steakhouse got you a real steak, but I’m old . . . .
Because Ahnold Schwarzenegger is giving California’s transportation bond money to China so they can run their ‘trains’ here.
These experiences helped me out later in life at a quaint little spot called McCormick Place.
Dorral ping.
Bad*ass! Tell it!
You support “free trade”.
I fail to see that it would unite people behind Obama, unless he pushes for it.
Sorry, but the pain of seeing my fellow Americans out of work is too much.
Considering that we have so little manufacturing/production in the US [comparatively to our consumption, I mean]; and in conjunction with all the regulations and taxations; this leads to an utterly unsurprising (and obvious) outcome for any sort of “trade war.”
We still make pens? Where?
I drove past the Janesville, WI location of the former Parker Pen plant once. They saved the front door.
>>to know I’d be saving money over the long haul by buying the US made pen.
>
>Always buying the more expensive product is your recommendation for saving money?
Maybe TwelveOfTwenty is part of the Collective known as Government Employees... “buy the most expensive product” sounds an awful lot like government contractor-work (i.e. one of the corrupt sides).
[/cynic]
Name of company please.
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