Neubarth
At the Ballpark July 30th
China has created a tremendous trade advantage because Beijing has greatly undervalued Chinese currency. In the past they had said that they would remove the artificial lock to the dollar in the "near future" but they have always failed to do so.
As the European financial crisis continues to deepen, Beijing appears to be pulling back from expected moves to loosen its currency's lock to the U.S. dollar, saying the euro's slide to four-year lows against the dollar is putting too heavy a burden on its own exporters. (i.e. they are not selling as much Chinese crap in Europe now that the Euro is seeking parity with the dollar. -- It still has another twenty percent to fall to be even. I well remember when ninety cents American would buy a Euro.)
China has kept the yuan at a rate of about 6.83 per dollar for nearly two years, seeking to cushion its exporters from the global financial crisis while at the same time screwing the American workers. Some economists reckon the yuan is undervalued by up to 40 percent against the dollar, giving Chinese exporters an unfair advantage in overseas markets. Personally, I think it is undervalued by sixty percent.
At any rate, we need to shut WalMart down (from Communist imports) and impose strict quotas on Chinese goods until they agree to let the Yuan float. If I were president, that would have been done the day I entered office. Obama of course does not have a clue.
As the European financial crisis continues to deepen, Beijing appears to be pulling back from expected moves to loosen its currency's lock to the U.S. dollar, saying the euro's slide to four-year lows against the dollar is putting too heavy a burden on its own exporters. (i.e. they are not selling as much Chinese crap in Europe now that the Euro is seeking parity with the dollar. -- It still has another twenty percent to fall to be even. I well remember when ninety cents American would buy a Euro.)
China has kept the yuan at a rate of about 6.83 per dollar for nearly two years, seeking to cushion its exporters from the global financial crisis while at the same time screwing the American workers. Some economists reckon the yuan is undervalued by up to 40 percent against the dollar, giving Chinese exporters an unfair advantage in overseas markets. Personally, I think it is undervalued by sixty percent.
At any rate, we need to shut WalMart down (from Communist imports) and impose strict quotas on Chinese goods until they agree to let the Yuan float. If I were president, that would have been done the day I entered office. Obama of course does not have a clue.
