WASHINGTON (MarketWatch) -- The House of Representatives ramped up pressure on China Wednesday to boost the value of its currency, with U.S. lawmakers approving legislation that could lead to duties on Chinese exports considered unfairly cheap because of undervalued currency. House lawmakers voted 348 to 79 in favor of the bill, which supporters say will help American industries hurt by China's undervalued currency. With a national unemployment rate of 9.6%, there's pressure on U.S. lawmakers facing upcoming elections to show action on jobs. The trade deficit with China is expected to displace more than 500,000 U.S. jobs in 2010, analysts say. http://www.marketwatch.com/story/cu...in-house-of-representatives-2010-09-29-185590 The fun has just started. I smell high currency vola opportunities across the board. Fasten your seat belts !
trade war all china imports increase by 100%. and no new net jobs created. in reality jobs will be lost. and sales tax plummet. the yuan would have no chance to appreciate as a weakn china economy will make the yuan or china economy weaker. china puts tarriffs on US imports and bans US firms operating in china. all american owned companies confiscated by the state an ask to leave. american movies banned from china etc. this is real f#cking trade war man! than real military war. exchange nuclear bombs.
Impressive. I didn't think it would even pass, never mind with such a large margin. Congress being what it is, I can only assume the House already has a deal in place with the Senate to make sure this thing stalls indefinitely.
As I posted a few days ago in another thread, China exports about 400% more in goods and services than we export to them. The pain would mostly be on their side. US total exports to China I believe are something like $4-5 billion a month. That is a rounding error in the total US GDP. But imagine if $20 billion a month were removed from the Chinese economy which is something like 30-40% the US GDP...
And that is a part of the problem. Too much market power concentrated in less giant chains, shoving this Chinese crap down our gullets. D#2$n reeboks last about two weeks. Mr. Sam is rolling over in his grave.