I smell a financial disaster for the US

tardfarmer · 04-08-2005, 08:32 AM

http://news.ft.com/cms/s/fca01ee0-a7...00e2511c8.html

"The US Senate will vote no later than July on legislation that would slap
across-the-board tariffs on imports of Chinese goods unless China agrees
to revalue its currency.

The rumblings in Congress are increasing pressure on the administration
to declare that China is manipulating its currency."

WELL DUH! Even though china has joined many of the european trade pacts, they
clearly stated that they were NOT going to float their currency - they're not
stupid, they keep their currency slightly devalued to stay just below the dollar.

How come the idiots in congress don't know this and I do?

North Texan · 04-08-2005, 11:35 AM

I don't think China can keep this up indefinitely. Too much upward pressure on their currency and too much downward pressure on ours. And if they stay focused on the $ without allowing for adjustments with the Euro, Yen, etc., looks like it would come back to haunt them.

badshotbob · 04-08-2005, 11:51 AM

Quote:

ORIGINAL: tardfarmer

How come the idiots in congress don't know this and I do?

Can you say, "smoke-screen"?

Californiadoctor · 04-08-2005, 03:10 PM

I think North Texan is correct. At a certain point the Chinese are going to want more paper (dollar bills) for the goods they export to us and they are going to be less willing to buy our government bonds at low interest rates. When this happens, the price of imports and their domestic competion will go up, as will interest rates. We will be back to the bad old days of "stagflation" when prices shot up but the economy went into recession.

Californiadoctor

tardfarmer · 04-08-2005, 03:14 PM

Quote:

We will be back to the bad old days of "stagflation" when prices shot up but the economy went into recession.

Yup, and I remember those days well -- they sucked.

Deleted User · 04-08-2005, 07:16 PM

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tardfarmer · 04-10-2005, 08:03 PM

LOL,

Just read today that China will surpass the US in technical "know how" in as little as 5 years....

Good job corporate america.. talk about butt porking your own...

summit daWg · 04-11-2005, 09:18 AM

It does suck, but just WHO is buying these products??? In some ways we are a nation of idiots. The high demand by the Chinese for oil that has us payingso much for fuel is a DIRECT result of the average Americans... "Cheaper is best" mentality, along with the same thinking by corporate bosses outsourcing jobs!!

Quote:

ORIGINAL: tardfarmer

LOL,

Just read today that China will surpass the US in technical "know how" in as little as 5 years....

Good job corporate america.. talk about butt porking your own...

CalHunter · 04-11-2005, 10:58 AM

Quote:

ORIGINAL: tardfarmer

LOL,

Just read today that China will surpass the US in technical "know how" in as little as 5 years....

Good job corporate america.. talk about butt porking your own...

I just don't see that.

tardfarmer · 04-11-2005, 11:06 AM

Quote:

I just don't see that.

check out the number and type of tech jobs that are NOT available in the US anymore.

sure they're american corps over there, but that still doesn't bode well for tech prowess at home.