What am I missing with this relationship. Here we are the US telling China to stop holding its currency so low. Well the last time I looked the US Dollar was near its all time low, everyone knows the US manipulates its currency, yet we tell China to stop manipulating its currency. The US is complaining that China is subsidizing its businesses, that last time I look the US was doing the same, the government always bails out businesses, they are even think of helping the sub prime lenders right now. How can the US who is borrowing from China tell them how to run their financial system, yet here we are the US in debt up to our eyeballs. WHAT IS GOING ON HERE??????
We tell them because we support their economy like no one else and American companies are being heavily damaged by the artificially low prices in China while they stockpile money. If the US starts imposing tariffs on Chinese goods to offset either the subsistence by the Chinese government or the differential of the currencies it will be a much harsher world for the Chinese than allowing for natural appreciation. I'd personally like to see our business go closer to home or somewhere that doesn't have the government system or human rights records(currently) that China has. If there was no imbalance in the system and prices in China weren't artificially cheap, then we'd probably not be there anyway because at some point prices will have to come up. It's truly a race to the bottom to find the cheapest shit made by the poorest people.
What he said. If you think the US is manipulating it's currency even remotely in the same arena as the Chinese do theirs, you're insane. Certifiable.
Right on, everything you buy in the US now days is cheep throw away junk made in China. I have an old Emerson fan weighs 40 pounds, its 60 years old and works like charm, MADE IN THE USA BABY!!!!!
Yes, the US manipulates its currency, but in a different way than China. They intervene in the markets to hold a particular price. We print so many dollars and borrow/spend so much that nobody can figure out what to do with them all. Neither is good, IMO.