While visiting offices in D.C., more often than not we heard that China’s currency problem is non-existent. Time after time we heard that China doesn’t manipulate it’s currency and that it’s an issue that doesn’t need to be resolved. Now we see that they were blatantly wrong. China devalued it’s currency August 11th in order to make their goods even cheaper to us and to make our goods more expensive there. Think they still play fair?
Tag Archives: Currency Manipulation
China has devalued it’s currency yet again. All this does is hurt American companies by giving Chinese exporters an unfair price advantage. If you thought Chinese goods were cheap, they are going to be even cheaper. This sounds great for our wallets, but it is disastrous for our economy.
By looking at cold hard evidence of how “free trade” deals have negatively impacted the U.S. economy, we often wonder how it’s possible that our elected leaders want more. President Obama is asking Congress to give him Fast Track in order to ram through Congress 3 huge trade deals, which one of them alone encompasses 40 percent of world GDP and 25 percent of world trade. By looking at the U.S.-Korean Free Trade Deal (KORUS), President Obama promised that it would increase U.S. goods by $11 billion which would support 70,000 jobs. A couple years later we’ve actually seen exports decline with South Korea, while our trade deficit has increased and we’ve lost 60,000 jobs.
Secretary of State, John Kerry, has welcomed one of China’s top diplomats, State Counselor Yang Jiechi, into his Boston home to further the U.S.-China relationship. Chinese and U.S. officials said that the talks would cover a broad range of issues including economic ties. “The Secretary and the State Councilor used the dinner for informal and in-depth discussions and to speak frankly about ways to strengthen the bilateral relationship, improve cooperation on global and regional issues, and better manage differences,” a senior State Department official said. However looking at our history with China, furthering our relationship with them only means sinking our economy even more.
When we look at the causes of the colonists’ discontent, we see that some themes are prevalent through the centuries. The King of England used tariffs and manipulated trade to benefit England at the expense of the colonies. In school we learn about the rebellion against the tax on tea, but in reality this was but one small issue in a large list. The real problem was that England was protecting its home markets at the expense of colonial ones.