Restrict Imports from China?
Babel Fish 2010/09/18 00:49:12
The general stupidity of the present administration, that it will
not impose extra import tax on certain Chinese goods, to curb the one
way money flow to Chinese banks. However its not that stupid when you
look at the politics and the fact that China would react by placing
sanctions on all US goods.
I really am amused by the way this factor was edged around, with a very
un-logic statements by Roach (Morgan Stanley) concerning Treasury
Secretary Timothy Geithner's decision.
Time to reveal truth about China's yuan debate
"The lawmakers have labeled China a "currency manipulator" and demand
that Beijing let the Chinese yuan, or Renminbi, appreciate to balance
its trade and narrow the huge deficit.
Their efforts are attempting to make China an easy scapegoat for
America's economic woes and are in no regard to the fact that the value
of the yuan has increased by up to 20 percent since 2005.
The Americans should be bold enough to put the responsibility for
creating the trade imbalances on their own shoulders instead of trying
to cast blame on others. The entire world knows the United States
doesn't bank much money and counts on the world's savers, such as China,
to run large current accounts and trade surpluses to provide America
Applauding Treasury Secretary Timothy Geithner's recent decision to not
label China as a currency manipulator, Stephen Roach, chairman of Morgan
Stanley Asia, said the bulk of China's foreign exchange reserves helps und the massive U.S. savings shortfall.
Roach warned that a reduced buying of goods from China, America's
largest foreign lender, would put sharp downward pressure on the dollar
and possibly trigger a dreaded double dip in the U.S. economy. That,
Roach said, could create turbulence in the fragile economic recovery.
Instead, the answer to U.S. trade imbalances lies in structural reforms.
But regrettably, the changes necessary to produce such reforms cannot
The problem really is that America is in between a rock and a hard
place. It needs to manufacture it own goods and really much less on
China. But it owes a debt to China, and China has the aces in its hand.
So what is going to happen, the money flow still goes one way, no new
manufacturing base. Communism in China flourish even more whilst the US
empire and power folds, in its ever increasing debts.
The solution is not to be afraid of China and impose sensible import tax.
Read More: http://newsbull.wackwall.com/blogs/48
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