US-China trade should be mutually beneficial. Unfortunately, China has undervalued its currency against the US dollar, to gain an unfair advantage in world trade. It's non-tariff barriers limit imports from the USA. And it has obstructed investment by foreign companies in China. Since entering the World Trade Organization in 2001, China has abused free trade with a mercantilist trade strategy that has severely damaged the economies of the USA, Europe, and nations around the world. Yet under both President Obama and President Bush, the United States Treasury Department has consistently refused to name China as a currency manipulator. This has prevented Congress from imposing import duties on Chinese goods. The result has been enormous trade deficits for the USA, huge job losses and chronic unemployment, a reduction in USA government tax revenues, and higher social safety net payments. This has worsened the stubborn US budget deficits and the ballooning national debt. Meanwhile, the Chinese economy has grown rapidly, year after year. In manipulating the renminbi / yuan, China has amassed staggering foreign currency reserves and a massive hoard of US Treasury bonds. It may be trying to hide these in Belgium's EuroClear bank, to disguise its currency manipulation. US Corporations have contributed to this problem by relocating their manufacturing facilities to China, to exploit China's cheap labor. This has enriched US corporations with soaring profits, while impoverishing many Americans who are unemployed or under-employed. China is now using its export wealth to acquire strategic natural resource and high tech industries in the USA, Europe, and worldwide. The long-term consequences of China's currency war for the USA could be very serious, and all Americans should be very concerned. Clarification: By 2013, China's money supply was 9 times as large as it was in 2000. That translates to 800% growth. In comparison, the US money supply only doubled. Link to this video: youtube.com/watch?v=ENnhwgfFZzE Related links: Cumulative trade deficit with China -- Ron Rimkus http://blogs.cfainstitute.org/investor/2012/09/14/why-the-current-account-deficit-helps-explain-the-economics-of-qe3-2/ China Economic and Security Review Commission 2014 Report http://origin.www.uscc.gov/Annual_Reports/2014-annual-report-congress Stop Currency Manipulation and Create Millions of Jobs http://www.epi.org/publication/stop-currency-manipulation-and-create-millions-of-jobs/ History Shows That Sanctions Are Needed http://www.epi.org/publication/pm164/ Treasury report on currency manipulation http://www.treasury.gov/resource-center/international/exchange-rate-policies/Documents/2014-10-15 FXR.pdf Various Employment charts http://www.bls.gov/web/empsit/cps_charts.pdf Foreign currency reserves: http://data.worldbank.org/indicator/FI.RES.TOTL.CD?order=wbapi_data_value_2013+wbapi_data_value+wbapi_data_value-last&sort;=desc Unemployment Charts: http://www.shadowstats.com/alternate_data/unemployment-charts National Employment Law Project http://www.nelp.org/page/-/Reports/NetChange.png?nocdn=1 BLS Glossary http://www.bls.gov/bls/glossary.htm List of USA companies employing people in China http://www.cnn.com/CNN/Programs/lou.dobbs.tonight/popups/exporting.america/frameset.exclude.html WTO Charts http://www.wto.org/english/res_e/statis_e/its2014_e/its14_highlights1_e.pdf How Much U.S. Debt Does China Hold? The U.S. Isn’t Sure http://blogs.wsj.com/economics/2014/08/15/us-treasury-unsure-exactly-how-much-us-debt-china-holds/ Major Foreign Holders Of Treasury Securities http://www.treasury.gov/ticdata/Publish/mfh.txt and http://www.treasury.gov/resource-center/data-chart-center/tic/Pages/index.aspx Euroclear article http://www.washingtontimes.com/news/2014/jun/29/baffled-by-belgium-burst-of-us-bond-buying-raised-/?page=all Is Euroclear holding US bonds on behalf of China? http://asia.nikkei.com/print/article/27820 Peterson China Foreign Reserves http://blogs.piie.com/china/?p=79 M2 Money Supply http://www.investopedia.com/terms/m/m2.asp New York Times: China's money supply Growth http://www.nytimes.com/2014/01/16/business/international/china-dwarfs-us-in-monetary-stimulus.html?_r=0 Federal Reserve Economic Data Charts (FRED) http://research.stlouisfed.org/fred2/graph/ Currency manipulation and the Trans Pacific Partnership http://www.foreignaffairs.com/articles/142784/c-fred-bergsten/the-truth-about-currency-manipulation It Is Time To Stand Up To China http://www.forbes.com/sites/mikecollins/2015/01/28/it-is-time-to-stand-up-to-china/ Treasury Fails To Name China as a Currency Manipulator for the 12th Time http://www.epi.org/blog/jack-lew-sees-evil-treasury-fails-china/ Video by Harvard-educated economist Peter Navarro: Death by China http://deathbychina.com/

• published: 21 Feb 2015
• views: 8442