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Here Comes Protectionism: House To Vote On Legislation Pressuring China To Revalue Currency

Tyler Durden's picture




 

And now the idiot politicians are finally really involved: Reuters reports that the House will vote this coming Friday to pressure China into revaluing its currency (uh... what?). While it is unclear just what passage of this law will do (send letters full of harsh language signed "Love Schumer", or pretend Americans will no longer buy iPads and Kindles, or better yet, offer to pay a refund to the $840 billion in US bonds held by the Chinese), this will merely accelerate the collapse of world trade into all out protectionism. As we presented a week ago, Goldman's Alec Phillips was right. His conclusion offers some hope that traditional trade relations won't collapse for at least a few more months: "We think that the risk that such legislation is enacted this year is still fairly low. There is little time left on the legislative calendar, and not yet a clear legislative strategy. That said, we also don’t expect this issue to disappear after the election, given that the current political reaction is driven by the weak economy and labor market as much as it is by the political cycle." Yet with the Democrats calling this vote, it is inevitable that it will pass. What happens next is really anyone's guess.

More from Reuters.

A key panel in the House of Representatives has scheduled a business meeting on Friday to vote on legislation pressuring China to revalue its currency, according to a committee notice.

The House Ways and Means Committee will meet Friday morning to consider an amendment crafted by House Ways and Means Committee Chairman Sander Levin, the notice said.

"The bill, as considered by the Ways and Means Committee, will modify the original legislation introduced by Representatives Tim Ryan (D-OH) and Tim Murphy (R-PA) to make it fully consistent with World Trade Organization (WTO) rules," Levin said in a statement.

 

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Wed, 09/22/2010 - 15:24 | 598095 VK
VK's picture

The US gets 10pc unemployment and China gets 10pc growth. I think Niall Ferguson said that, it won't go down well with the public.

Wed, 09/22/2010 - 15:49 | 598189 DonnieD
DonnieD's picture

Don't forget lead painted baby toys and chinese drywall. I mean, who wouldn't mind trading their job for that?

Wed, 09/22/2010 - 15:53 | 598200 Quinvarius
Quinvarius's picture

Those lead painted toys do taste pretty good though.

Wed, 09/22/2010 - 16:10 | 598234 iDealMeat
iDealMeat's picture

But the Drywall smells ohhh soo goood..

long Cu

Wed, 09/22/2010 - 16:50 | 598418 Dont Taze Me Bro
Dont Taze Me Bro's picture

An all out trade war will save this republic!

Globalization has bankrupted America. Its time to put a stop to this madness.

 

Wed, 09/22/2010 - 18:52 | 598708 Bananamerican
Bananamerican's picture

yup. 

Tyler a LOT of us don't agree with you on Globalization.

(Don't believe me? Stick a poll up...)

Maybe it's because we're, you know, AMERICANS and carry these quaint notions of national sovereignty and love of country around in our cabezas while you hail from somewhere south of these borders and so, don't really give a shit!

Fuck China! It's about time we had a trade war, tariffs, sanctions against Co's that offshore operations (seeking that next great slave labor pool) and removal of tax breaks and subsidies that encourage same.

Screw your "globe" Tyler AND your pliant 3rd world workforce

 

Thu, 09/23/2010 - 09:34 | 599564 VWbug
VWbug's picture

trade war, great idea! say goodbye to Boeing, Cat, GM, Ford, Chrysler etc etc.

Maybe americans should become competitive again, now there's an idea.

Maybe stop listening to idiot economists who say consumption is the key to growth.

Americans are giving chinese worthless pieces of paper for real goods, you should be thrilled the chinese have accepted them for so long.

 

 

Wed, 09/22/2010 - 15:35 | 598106 Spitzer
Spitzer's picture

Revaluation of the Yuan equals higher interest rates in the US.

Is anyone in congress aware of that ?

Now that everyone in the US has refinanced their house at lower rates, the spread that the banks make their living on is smaller. Higher rates will bankrupt the banks again.

Its wierd that Denninger doesn't get this either. He will probably "write a ticker" in favour of the idea. Denninger actually mentioned gold yesterday.

An "in your face" statement that The Federal Reserve will attempt to create inflation - intentionally - is tantamount to a declaration of willful and intentional violation of the law.

The market reacted to this, as you would expect it to - it looked beyond the black letter of the statement to the implications, and reminded itself that the last time The Fed went "rogue" was in the 1970s, and the result was double-digit price inflation.

The reaction in the dollar and gold was immediate and violent - and with good reason, given history.

Wed, 09/22/2010 - 16:22 | 598303 metastar
metastar's picture

Whoa! Higher rates?

We have the FED. They'll buy anything!

Wed, 09/22/2010 - 21:10 | 598960 Kayman
Kayman's picture

Hey Spitz

That cold air in Admonton is freezing yur brain.

These political prostitutes are trying to close the barn door after the barn has burned down and they have lost the title to the property.

Confrontation with China is inevitable; they have been given a 20 year free ride on the backs of the American Middle Class worker.

Unless American politicians recover employment in manufacturing in the U.S. the country is finished.

Chinese manufacturing is rising along with its foreign currency reserves, creating a large creditor nation.  The U.S. is losing most of its manufacturing base, is running hundreds of billions of dollars in trade and current account deficits and is now the world's largest debtor nation. I guess to you, that is a mere coincidence.

Without manufacturing the U.S. cannot exist. Selling shit U.S. paper by the New York criminals didn't seem to catch on with their customers.

And don't give me the rising consumer prices BS argument. Isn't that what our Man Benny is looking for ? Inflation, the expectation of rising consumer prices ?

Oh, yeah, the selling of Boeing planes to China thing ?  The only reason China buys anything is so they can copy the technology and bankrupt their former suppliers. 

Good luck on that taking in each other's laundry thing.

The U.S. will have to deal with the consequences of this ONE-WAY trade relationship with China before it is too late.  Perhaps it is too late.

 

Wed, 09/22/2010 - 15:29 | 598111 vote_libertaria...
vote_libertarian_party's picture

A non-binding nothingburger?

Wow, that'll teach them a lesson.

Wed, 09/22/2010 - 15:56 | 598212 Saxxon
Saxxon's picture

That is exactly what it is.  China is a sacred cow and nearly all the ratfucking dogs in Congress are paid off.

Wed, 09/22/2010 - 19:53 | 598812 Spitzer
Spitzer's picture

paid off by who ?

Wed, 09/22/2010 - 21:45 | 599008 Kayman
Kayman's picture

Spitzer

Paid off by Who(m) ?

Well, of course, the payer and the payee will disclose the sums paid and the numbered accounts on form 117(b)....

Wed, 09/22/2010 - 16:11 | 598261 NumberNone
NumberNone's picture

All said with fingers crossed and after a pre-emptive phone call to China letting them know 'We're only kidding!!!  Please keep buying our debt!!!!"

 

 

Wed, 09/22/2010 - 16:21 | 598297 Nihilarian
Nihilarian's picture

Trying to outsmart Chinamen in math is a bad idea. Next thing you know, they're going to be peeing on your rug and demanding money.

Wed, 09/22/2010 - 17:07 | 598467 knukles
knukles's picture

And you'll still be hungry 15 minutes after finishing.

Thu, 09/23/2010 - 08:03 | 599429 zhandax
zhandax's picture

How about a little reality for you cliche mongers.....China is not buying our debt.  You are if you are in the social security pool.  That's who owns the biggest chunk of US debt.  That's why they can default in the end....the cock goes up the ass of the poor sucker who expects a return of that money he had confiscated all his working life....

Thu, 09/23/2010 - 00:56 | 599227 merehuman
merehuman's picture

abacus, ritches!

Wed, 09/22/2010 - 15:30 | 598118 NOTW777
NOTW777's picture

maybe they will vote that the US has no debt and the summer of recovery is here and everything is wonderful

Wed, 09/22/2010 - 15:30 | 598122 hedgeless_horseman
hedgeless_horseman's picture

On a long enough legislative agenda the IQ for everyone drops to zero.

Wed, 09/22/2010 - 15:32 | 598129 VK
VK's picture

+++++

Wed, 09/22/2010 - 15:59 | 598223 mikla
mikla's picture

+1 HAHAAHAAAAA!

Also:

Wed, 09/22/2010 - 18:21 | 598643 PuppetRepubl1c
PuppetRepubl1c's picture

awesome!  :)

Wed, 09/22/2010 - 16:49 | 598414 Robslob
Robslob's picture

+ 1 Quadjillion Bernanke Bucks

Wed, 09/22/2010 - 15:32 | 598128 Ragnarok
Ragnarok's picture

I really feel like Cassandra today.....

Wed, 09/22/2010 - 15:32 | 598130 spartan117
spartan117's picture

I hope this bill passes.  Once it passes, it will die a quick death in obscurity.  I doubt Congress has the balls to actually levy tariffs on Chinese goods.  Now that would lead straight to hyperstagflation, as domestic producers ramp up prices on everything that competes with the Chinese.  Get ready for $300 for a pair of running shoes at Walmart if that ever happens. 

"Made in America, but you can't afford it!"

Wed, 09/22/2010 - 16:11 | 598258 linrom
linrom's picture

You have the antidote for US economic virus and the best you can do with it is to call it a placebo?

Wed, 09/22/2010 - 17:46 | 598551 spartan117
spartan117's picture

Tariffs only benefit the government.  What domestic producers gain in pricing power, they lose in overall sales, because no one can afford anything!  You call that an antidote? 

The people of America will lose out.  The REAL antidote to this entire mess is to accept that living standards will decline here in the US.  You cannot spend more than you create indefinitely and expect it to continue.  We've been on borrowed time for too long, now it's time to pay the piper.  Let the value of the dollar drop, stop all deficit spending, repeal federal and state minimum wage laws, get rid of the unions, and let the cost of labor, like any other commodity, find market value equilibrium.  Because if you let the government continue to mark wages to model, you will NEVER have at or full employment.  NEVER.  And the rest of the world will continue to advance at a much faster pace as capital finds the most efficient use for itself.  Socialist can't seem to understand it.  You can't force me to invest in America if you create artificial floors for my costs.

Wed, 09/22/2010 - 20:38 | 598894 Sam Clemons
Sam Clemons's picture

++++  so many people don't get this.  I take it you've read some Henry Hazlitt or have thought about things for more than a few seconds.

Wed, 09/22/2010 - 21:59 | 599027 Kayman
Kayman's picture

Uhhh... Spartan old boy,

Why not move to that laissez faire country- China.  Get a nice piece of government land, have the government build you a factory and send over some free slave labor in exchange for all the technology you can steal from your home country.

Why is the only argument about reducing U.S. wages. And NEVER about socialism in the banking and corporate welfare bum class.

American unions (especially public sector) are overpaid but relative to the easy socialist money  generated by the stealing from the public Criminal Bankster monopoly, the unions are a distant second.

So please, please don't invest in America. Move to China as soon as possible.

Thu, 09/23/2010 - 10:19 | 599708 spartan117
spartan117's picture

Why is the only argument about reducing U.S. wages. And NEVER about socialism in the banking and corporate welfare bum class.

Are you referring to GM and Chrysler?  Two of the largest union-employed "corporate welfare" firms that received tax-payer money last year?  How about the USPS?  They get taxpayer money every year to cover their annual deficits.  It's also union-run.  They're about to get a $75 billion bailout from the Democrats. 

American unions (especially public sector) are overpaid but relative to the easy socialist money  generated by the stealing from the public Criminal Bankster monopoly, the unions are a distant second.

Tell me again how many jobs have been created by Unions?  I don't think I've ever purchased a good or service from a Union before.  I might have purchased a good/service from a company employing union workers, but never from a union itself.  That's because Unions create nothing.

American unions (especially public sector) are overpaid but relative to the easy socialist money  generated by the stealing from the public Criminal Bankster monopoly, the unions are a distant second.

Bullshit.  Stanford estimates that in California alone, public pensions are underfunded by $425 billion.  That means taxpayers, like myself, will be taxed accordingly so that public sector employees will get to retire.  Unions are stealing directly from me.

So please, please don't invest in America. Move to China as soon as possible.

Invest in America?  Invest in China?  I have nothing left to invest after I'm directly and indirectly taxed so union (public and private) can retire in comfort. 

I wish you and your kind would move to China.  They don't treat unions too kindly there.  It'd be a win-win for all of us who'd like to restart America based on a real work ethic.

Wed, 09/22/2010 - 15:32 | 598132 NOTW777
NOTW777's picture

china is smiling - why even bother building up its military

Wed, 09/22/2010 - 15:50 | 598194 Commander Cody
Commander Cody's picture

Don't fool yourself into thinking that China does not see itself as the next world dominator, replacing the good ol' US of A.  They are building up their military, setting up commodity pipelines, and arranging strategic alliances.  We are the target.  Riling up a trade war will lead to military engagement.  War is believed to cure economic ills.  That is the end game for this debt problem, IMHO.

Wed, 09/22/2010 - 16:57 | 598441 1100-TACTICAL-12
1100-TACTICAL-12's picture

The pieces are all being put into to place. U.S. sells f-35's to Saudi Arabia, Russia sells missiles to Syria, so forth so on. Kinda like goin in a bar on Friday  night & talkin shit, someone is going to get their ass kicked.

Wed, 09/22/2010 - 15:33 | 598134 Montgomery Burns
Montgomery Burns's picture

Just print up an 840 billion dollar bill and present it to them. Presto.... Now, whose picture do we put on it?

Wed, 09/22/2010 - 15:38 | 598149 NotApplicable
NotApplicable's picture

Now that would just be mean.

They should at least break it up into 8 hundred billion dollar bills, plus 2 twenty billion dollar bills.

Wed, 09/22/2010 - 15:42 | 598164 spartan117
spartan117's picture

I hope you were being facetious, because that act would destroy the value of the dollar overnight.  We would give ourselves (USA) more problems than the payment would solve.

Wed, 09/22/2010 - 15:49 | 598191 DarkAgeAhead
DarkAgeAhead's picture

"Easy Smithers, this sponge has corners you know!"

I like this idea even if it assures our overnight destruction.  Depends on whether you want to take the hit now or later. 

Wed, 09/22/2010 - 15:56 | 598210 Sleepy Weasal
Sleepy Weasal's picture

It appears to me that the USofA intends to default on it's external debts by debasement, but what do I know.   I thought the hoff would make it to week two.  

Wed, 09/22/2010 - 16:45 | 598399 FranSix
FranSix's picture

The Chinese low wage worker on Wall St. merely prints up the counterfeit commie cominterm and pays for U.S. sovereigns printed up by Timmy.

Its all just jawboning to attempt a lower dollar valuation.  That's it.  They sure are hammering away at it, though.  Its as if they were banging pots to scare away a bear.

Wed, 09/22/2010 - 15:33 | 598136 williambanzai7
williambanzai7's picture

We will eventually reach a point when the population says who cares if we owe China money. This point will be reached when we realize that there really is no hope for economic advancement as long as we are hurried under Chinese debt.

That time will come.

Wed, 09/22/2010 - 15:46 | 598180 NotApplicable
NotApplicable's picture

I'd say the point will be reached when we divide up again into Axis and Allies.

There is no repudiation like the Jubilee known as war.

And just like the new cars that disable themselves when payments aren't made, I bet we suddenly find out that China has embedded quite a few self-destruct algorithms into various systems.

Wed, 09/22/2010 - 15:50 | 598193 DarkAgeAhead
DarkAgeAhead's picture

Absolutely on the self-destruct algorithms.

Wed, 09/22/2010 - 16:08 | 598252 tip e. canoe
tip e. canoe's picture

care for an Apple?

Thu, 09/23/2010 - 06:38 | 599389 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Dont' forget, every American has about 3 Chinese peasants working directly for them. Have you hugged your Chinese peasants lately?

From the FT, Hu Jintao on why a reval is not good : "“The conditions for a major appreciation of the renminbi do not exist,” he said. If the renminbi were suddenly to rise by a large degree against the dollar, “we cannot imagine how many Chinese factories will go bankrupt, how many Chinese workers will lose their jobs, and how many migrant workers will return to the countryside... China would suffer major social upheaval”.

Wed, 09/22/2010 - 15:34 | 598138 zaknick
zaknick's picture

make it fully consistent with WTO

 

sounds like a loophole

 

trade war against your biggest creditor? In the words of the drug trafficker Dubya, "bring it on!"

 

Gold, bitchez!

Wed, 09/22/2010 - 15:39 | 598153 Restcase
Restcase's picture

Once you decide to buy your own debt, you don't need that bond customer over yonder and can start jerking his chain. This piece of posturing tells export industries (and their unions) the politicos care. As the bond dumping risk goes down, politically profitable posturing will increase.

Wed, 09/22/2010 - 16:12 | 598263 Saxxon
Saxxon's picture

+1

Wed, 09/22/2010 - 15:40 | 598159 doolittlegeorge
doolittlegeorge's picture

a yuan reval or anything else vis a vis China is not protectionism.  should the US decide "no more goods from Canada or Britain" then we'd be talking protectionism.  I wait with bated breath.

Wed, 09/22/2010 - 15:46 | 598183 spartan117
spartan117's picture

Perhaps labeling China as a currency manipulator is prelude to tariffs, which can then be categorized as protectionism. 

Wed, 09/22/2010 - 15:41 | 598163 Turd Ferguson
Turd Ferguson's picture

Good afternoon, Mr. Hawley.

Good day, Mr. Smoot.

Thu, 09/23/2010 - 02:20 | 599274 Hephasteus
Hephasteus's picture

Isn't that a good cop bad cop tv show?

Wed, 09/22/2010 - 15:43 | 598167 john_connor
john_connor's picture

The thing formerly known as a market will front run any Smoot Hawley like legislation, with the likely result equity carnage.

Wed, 09/22/2010 - 15:44 | 598170 midtowng
midtowng's picture

It's inevitable. Everyone should just accept this and put it into their investment plans.

Wed, 09/22/2010 - 16:08 | 598172 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

China is in a win win situation when it comes to their currentsea. Because it is low, and if it went lower, they could increase their exports. The only problem then would be paying their people enough to spend on middle class items, because the people's monie would be low.  This would be a thorn in the side of any global "recovery", and in the long run derail the global build for a New World Order.  If they faced rebellion, I do not think the World Police would care much, for if there was uprising in China, what would that mean for America?  If China could not buy America's debt, the World Police would either be out of a job, or marginally manageable.

Americans are the ones faced in a dilemma; a higher dollar means we pay China et al more monie on our debt (this because the monie, the "doelarr", still has value). If we have a lower dollar, imports, such as oil, cost much more.

Wed, 09/22/2010 - 15:50 | 598173 willien1derland
willien1derland's picture

Wonderful a harshly worded letter from the US Congress to China indicating it isn't playing fair - BRILLIANT - As China wages unspoken war in the FX Markets by neutralizing competing industrial competitors Japan & Germany, the latter have no direct recourse with China - But we need to LEARN from the Chinese - they apparently have a strategy - the best the Washington DC BRAIN TRUST can muster is a feeble reaction - PATHETIC!

Wed, 09/22/2010 - 15:54 | 598202 buzzsaw99
buzzsaw99's picture

Pure kabuki. It's only clownbux. If they want to work their skinny asses off to make a ten cent rubber duckie that's fine by me.

Wed, 09/22/2010 - 15:55 | 598206 Shameful
Shameful's picture

rotflol good.  It's always smart to not only threaten the man holding a gun to your head but to egg him on dare him to shoot you.  Of course after being shot the politicians will scream and blame the Chinese "Why did they shoot?!?!".  Love the building of a scape goat.  So where are my yellow menace movies?

Wed, 09/22/2010 - 15:57 | 598216 goldmiddelfinger
goldmiddelfinger's picture

But that's exactly what 6.97 million home"owners" are doing.

Wed, 09/22/2010 - 15:56 | 598211 gnomon
gnomon's picture

I actually think protective tariffs against China would be a good way to pull the plug on this financial fiasco.  (And it does need to be pulled).

And it would force China's hand in regards to its ultimate geopolitical goals.  Currently we are being bled to death by China through a very well thought-out mercantilist strategy that has taken decades to bring us to our knees.  

The sooner we duke it out with them, the more likely we will survive the encounter.

Doesn't anybody read the East Asian headlines anymore?  It truly is "China Against the World".  Take your bloody blinders off.  

And, of course, we were/are our worst own enemy, but that doesn't mean that we have to now cry "Uncle Mao" and lie down and die, (and, thereby, empower a rigidly totalitarian state to set the world agenda with a permanently crippled United States unable to intervene).

Pax Americana will be SORELY missed.  

You thought we were bad.  Wait until China totally turns us into a Commodity Colony. There are Globalists and then there are UberGlobalists, (and that would be China).  The PRC/PLA is out to grab all of the marbles in the brewing Resource War.  And BUSTING the U.S. is the first step to that goal.

Wed, 09/22/2010 - 16:00 | 598214 docj
docj's picture

What, precisely, are they proposing to do about it?  Send Hans Blix over to the ChiComs with the proverbial "strongly worded letter" in hand?

November 2 can't come quickly enough - if only to end this sort of kabuki and to move on to an entirely different sort of kabuki.

Wed, 09/22/2010 - 16:01 | 598227 Grandpa Bear Hug
Grandpa Bear Hug's picture

Uncle Ben has already taken action to revalue our currency at the expense of every retired citizen in America let alone every child and grandchild in the country...we all need to revisit the womb.

Wed, 09/22/2010 - 16:04 | 598232 LostWages
LostWages's picture

Its election season and we need a scapegoat.

Its also why China is stockpiling every commodity they can get their hands on.

Damn currency manipulator!!  (No Japan, not you....or you Swiss either....Benny? Maybe)

Wed, 09/22/2010 - 16:04 | 598242 Catullus
Catullus's picture

Purhaps this is a supportive measure for the Chinese government. This has been US state department bullshit for over a decade now. The US knows china will not unpeg, and china knows this is not a real threat. But what it does do is show the Chinese people that the government is "standing up against" the empire. Yes. What a resistance! Both sides know this is nothing, but it provides legitimacy to the state.

On the US side, someone can say they're fighting against the evils of being able to buy cheap stuff. This obviously pleases the Keynesian cleric and other witch doctors of idiocy strewn about the land.

Wed, 09/22/2010 - 16:06 | 598247 HarryWanger
HarryWanger's picture

"or pretend Americans will no longer buy iPads and Kindles"

That'll never happen. AAPL up 22% in 17 trading days. I keep thinking I should sell but it goes up every day. Bought it for a day trade or two and it just keeps going. 

 

Wed, 09/22/2010 - 16:30 | 598343 cxl9
cxl9's picture

Want to see it go down? Watch me go long. :(

 

Wed, 09/22/2010 - 16:13 | 598269 snowball777
snowball777's picture

"He shall have Power, by and with the Advice and Consent of the Senate, to make Treaties, provided two thirds of the Senators present concur..."

Overstepping our bounds a bit, aren't we congress?

Wed, 09/22/2010 - 16:28 | 598284 topshelfstuff
topshelfstuff's picture

Now let me make sure I got this straight; China, who we all know is, and has been, the biggest buyers of Raw Materials, increasingly so with OIL, Metals of all kinds, even advocates the Buying of Gold & Silver to their People, actually ALL Commodities which we all know are Priced in USD....We want them to be able to Buy ALL these Commodities, Gold & Silver, for LESS......You know I've watched this for years, even named it RED Herring...the tip-off should have come to you by seeing who, in this country, has been pushing for this policy the most.
Whose Benefit do they always push for

Wed, 09/22/2010 - 16:23 | 598308 LooseLee
LooseLee's picture

Well, they have to go home to their constituents showing them they are doing something...

Wed, 09/22/2010 - 16:33 | 598335 SnarkAttack
SnarkAttack's picture

I think we need to take a step back here and think about what we mean by protectionism.  Not that our own government isn't manipulating/printing our currency to help the banks and so forth, but almost all the other countries (Swiss, Japan, China, Brazil (soon), Germany (via the Euro)) are actively seeking to devalue their currencies to promote exports, protecting their own jobs and relying on the US to take the debt, print more reserve currency, and continue the charade a bit longer.

Furthermore, given the effects globalism wrecked on the middle class in the US, is this such a bad thing that for one our government is acting to protect it?  I'm 99% sure Congress would do it for the wrong reasons, but at this point accelerating the crash and the point at which the middle class overthrows the elite is a good thing isn't it?

We can't on one hand decry globalization for killing the US, and on the other complain when the US acts in its own interests against globalization.

Edit: Furthermore, trying to get them to revalue their currency is stupid when you can effect the same difference by levying a tariff that will make the product cost what the government thinks it would with a revalued currency.

Thu, 09/23/2010 - 10:03 | 599659 VWbug
VWbug's picture

umm sorry but tariffs are a 2 way street, there would be instant retaliation (or appeals to trade orgs).

currency revaluation is one way, yuan goes up vs dollar.

not that it will happen. I am quite sure the chinese are deliberately slowing it down to prove they won't bow to US pressure. Any self respecting nation would do the same.

But americans are too stupid to understand that i guess.

Wed, 09/22/2010 - 16:33 | 598352 bankonzhongguo
bankonzhongguo's picture

It would be funny if China short-circuited all of this and allowed expedited new citizenship and a tax holiday.  Back when Hong Kong was going back to China, the USA and Canada were selling citizenship for $1MM.  Think of all those US former banksters and hedge managers with $100MM waiting to avoid uncle sam out.  Think of all those GS'ers who would quit America and emigrate to China with all those billions.  Once that taxable money and power vacated New York and London to Shanghai and Beijing, China would be set for the next century.  Overnight, China could buy the very powers that could threaten default on those treasuries and otherwise continue the task of keeping the CNY out of the hands of the Bilderbergers.  In the end, they will still just a call their lobbyists to take care of Congress.

From an old China Hand, who started in 1984 in high school to work for BOC and beyond, there is no future in China for you or your friends.

Maybe the jobs will come back to America.  Maybe they just get sent to Liberia or Indonesia.

Wed, 09/22/2010 - 16:45 | 598400 Anarchist
Anarchist's picture

China will not have an easy ride to the head of the pack. It is going to be 20 years before China can project military power beyond it's shores. Even then it will be incapable of threatening any sizable Western power with military might.

Wed, 09/22/2010 - 16:37 | 598369 Horatio Beanblower
Horatio Beanblower's picture

You may have seen this before, but just in case you haven't...

 

The Obama Talking Bullshitter Doll - http://www.gop2112.com/obamabs/?article=898888

Wed, 09/22/2010 - 16:40 | 598377 Anarchist
Anarchist's picture

We are 5% of the worlds population burning up over 25% of the worlds resources. No matter what the clueless think, that disparity is impossible to maintain even if we declared war on China, India, Brazil ...etc.

The free ride is over. The standard of living for 90% of Americans and Europeans is going to drop and there is not a damn thing that can be done about it. Time to figure out if you are in the top 10% or in the bottom 90%.

Thu, 09/23/2010 - 10:11 | 599687 VWbug
VWbug's picture

a big reason the US uses more resources is because THEY PRODUCE MORE. Still by far the biggest economy in the world ya know.

Resources are not finite either, the sun comes up every day, trees grow, crops grow, rivers flow, and better technology makes it all more efficient.

 

Wed, 09/22/2010 - 16:42 | 598381 Panafrican Funk...
Panafrican Funktron Robot's picture

I'm pretty sure somebody is going to shake their fist in an easterly direction.  I think that'll be the extent of this.  "Darn you and your delicious orange chicken!!!!!?!?!"

Wed, 09/22/2010 - 16:47 | 598407 gnomon
gnomon's picture

Yep, SnarkAttack, it is time to pull the plug, and who gives a damn about motives at this point.  We need a little chaos to enable us freebooting proles a bit of an opportunity to turn the tables.  Otherwise, as all here have said ad nauseaum, it is a rigged game.  We need to bust out of that rigged game.  Come on guys, let's man up.  Let 'er rip.  It ain't going to get any better for us.  

We are engaged in two fights for our lives, (those of us who love freedom and liberty).  One fight is against the Banksters and their Globalist Cohorts, and the other is against Totalitarian Regimes that want to be the last man standing.  

Time is against us, individually, and for the democracies in general.  The longer this goes on, the less chance we have to prevail.

And I think the perfect sword for cutting the Gordian Knot would be a damn good trade war that gets totally out of control.   We need to mess up their algorithms and careful geopolitical calculations.    

Wed, 09/22/2010 - 17:07 | 598466 deadparrot
deadparrot's picture

Didn't some harsh talk about Germany's currency trigger Black Monday?

Wed, 09/22/2010 - 17:27 | 598517 redpill
redpill's picture

Bad China, bad!  Here, buy our bonds.

 

Wed, 09/22/2010 - 17:32 | 598530 spinone
spinone's picture

Puleeez!

Election time press releases.  A little fake blood for the masses.

Don't believe the hype

Wed, 09/22/2010 - 17:49 | 598558 gnomon
gnomon's picture

The "hype" is in the hearts of many Americans, regardless of what goes on in the Beltway.  As long as a critical mass of informed, active Americans "believe", it does not matter what corrupt party currently occupies that swamp on the Potomac.

The "software" that jump-started this nation is still extant.  

Wed, 09/22/2010 - 18:02 | 598592 bb5
bb5's picture

H.Ross Perot warned many years ago that NAFTA would cause a "giant sucking sound" of jobs leaving our country. He was laughed to scorn. Greenspan didn't think it was a problem that we don't have manufacturing here anymore. A jobless recovery is a mirage. I think it is inevitable that tariffs and much worse are on the way.

Wed, 09/22/2010 - 19:13 | 598754 Council of Econ...
Council of Economic Terrorists's picture

Apparently no one in Congress has studied history, or maybe like some have suggested that the plan is war to cure all debt ills.  We at least won't be invading Iran as the Squid and Citibank are opening up branches in Tehran according to Max Keiser. 

In other good news Larry "I like to gut Havard's endowment" Summers left the Council of Economic Terrorists as you all might know. Surprised Tyler hasn't written some commentary commemorating his resignation yet.

Wed, 09/22/2010 - 19:54 | 598816 the grateful un...
the grateful unemployed's picture

hard to believe they will get around to doing what should have been done 20 years ago. just to remind you the fix was in, when Clinton proposed WTO for China, and Bush signed it. (right after they took his spy plane and sent it back to him in a bag, he rewarded them) back in the 80s a congressional delegation went to Hong Kong to investigate claims Nike was outsourcing shoe parts in Commie China. They managed to get into the country, but every trail was a dead end, until they found this factory manager who had just gotten done closing the place, they kept moving the factories around, fooling our Congressmen and women. (not hard by the way) still this fellow confessed, yes it had been a factory, and before the political crackdown things weren't so good, they had only thieves and whores, prison labor, but since the crackdown, he said, things are much better, we have professors, scientists, artists, loud mouth democracy advocates, they work so much better!! so the whole frikking world is now a gulag, because the Congress didn't see fit to protect free trade. and they won't do it now either. so just put on your orange jumpsuit, and clock in comrade, if you even have a job. the state of the middle class in america, and the state of the constitution of george bush, and his dark side, has been down hill ever since. so laugh laugh laugh

Wed, 09/22/2010 - 20:58 | 598939 enobittep
enobittep's picture

I am not sure who is more dangerous - the Fed or the federal politicians and bureaucrats.  Screw China - when the western debt fueled consumer demand engine for China's exports runs out of gas - there will be more than a few Chinease standing.  The ensuing revolution will solve the Yuan currency issue.

 

Wed, 09/22/2010 - 21:08 | 598956 Mactheknife
Mactheknife's picture

What happens next is really anyone's guess.

Probably not something we would consider "productive". My wild ass guess.

Wed, 09/22/2010 - 22:40 | 599070 Buttcathead
Buttcathead's picture

uh, it aint gunna work.  China aint gotta do nothing.  Just because some crazy ass krackers write up a law dont mean jack Sh_t.  what a bunch of losers.

Thu, 09/23/2010 - 01:37 | 599248 gwar5
gwar5's picture

I don't think China's currency is the problem. We're already lowering our currrency.

The politicians need to get out of the way, let us compete, and stop running business out of the country. Highest corporate taxes in the world, myriad of regulations, hostile environment to business, self imposed energy crises, and the unions. I wouldn't make anything here either.

We are the Saudi Arabia of coal, gas, and we have 1 Trillion barrels in oil shales and we know how to get it out. We should be energy exporters instead of energy wimps. Let the Chinese buy energy from us and see how fast they jack their currency up. 

The politicians protecting the unions and committing economic suicide can cry me a river about polar bears and the global warming fraud. Tell the Chinese to take the blue pill. 

 

 

Thu, 09/23/2010 - 02:32 | 599278 jmc8888
jmc8888's picture

The funny thing is, since the goal is a new bretton woods type of structure with fixed exchange rates via treaties between sovereign nation-states, China by pegging its currencies, is actually closer to the solution than we are. 

Again, they are much closer to the answer, than we are.  We're telling them to go all into this mess, AS IT'S collapsing.  My mind is that they'll let it appear to the masses they are doing that, but of course they won't jump head first in.  More like wade a toe in, until it collapses.

We're in the wrong for telling them to float.  We're fucking idiots to float ourselves.

Instead we should be telling every nation of the world to peg. LONG TERM, but not forever.  OF course every decade or so slight adjustment would be needed given demographic and overall just changes, but you get the idea.

Of course this would occur in a CREDIT SYSTEM, American style..or similar given the different locales and culture, rather than British Monetary Imperialism (imperialism=globalization...the friendly test marketed term). 

So really it must be pretty funny for China to see our great mighty U.S. tell and threaten a trade war with them FOR NOT doing the diametric opposite action of OUR OWN INTERESTS, and HERITAGE.  Funny huh. 

It would be like a Brit bitching at you for taking the time out to eat tea and crumpets.  Or an American putting down the NFL in favor of Rugby.  Or the pope telling you to 'go to hell'.  A Louvre director telling you they hate art.  Do I need to continue? Or does the absurdity at least somewhat sink in what we are ACTUALLY asking China to do? 

Get Barack 'the gonna-herp-a-syphil-aids diseased' cock out of there.  Impeach the bum.  Glass/Steagall.  NAWAPA.  Much, much more.

Sack it up.  (and please don't forget to bag your local 'Queen induced coma' tea partier...tea bag them like they deserve it both nuts equally descending until you come to a complete and restful stop splitting the nuts on the bridge of their noses. Also forget to shower before hand and work up a good sweat)

With such an approach of world trade, there would still be PLENTY, we just wouldn't be poaching from each other, and fucking up everyone's manufacturing base and dwindling it..and thus economic base and sovereignty, etc..hey MUCH LIKE THE CURRENCY DEVALUATION SCHEME BY CENTRAL BANKS.  Each one goes around and devalues, much like manufacturing jobs go around to the cheapest place bouncing all around....mexico...japan...taiwan...korea...singapore...china...vietnam...

Very similar if you ask me.

Let's do more trickle down economics with bailouts, as really that's all bailouts are.. TRICKLE DOWN ECONOMICS, its just not paid for through tax cuts, which was an oxymoron to begin with.  Well at least they had the moron part right.

But you see the WWF (Queen of England) doesn't want the people of the world to manufacture and be self sustaining, it's all a hoax.  Take this money, and die.  (of course between now and the date you sign your soul on the dotted line, we'll print like crazy to make that pittance we gave you, a literal shilling).  The WWF, as fake as the old one, as believed as the old one by dumbasses too.  WWF=WWE at least in terms of being real.

What does the Queen control?

9/11 War on Terror

Iraq (even cooked up some fake stuff which of course BUSH was looking for any excuse, and guess who provided one????)

Wall Street *compilation of horrors*

Derivatives  *1971 Inter-Alpha Group

Climate Change/Cap and trade  *WWF founded by the Queen's husband

Her 'money'  *Her legacy

Only one side...starting...sponsoring...plotting....scheming...and we're about to get into a spat with China for her BS? Screw her.

She even had a great speech THIS YEAR, where she spouted all the above, and that these are the biggest problems we face, and that her monetary system was the best thing ever.  Nope, the AMERICAN CREDIT SYSTEM IS BETTER.

I guess it's happened before..  What the fuck do you think the cold war was REALLY about.  British Imperialism vs. the World, and the Communists were only trying to protect themselves from it and overreached a ton...and I mean a ton.  But that only happened because we went full retard with the Queen.

But America didn't have to step in and take the heat off them, because that's where it was directed, at BRITAIN. (no not the people, everyone loves the people, it's THEIR FUCKED UP SYSTEM EVERYONE HATES)

Funny America took the lead and claimed it was CAPITALISM that was at stake.  NO IT WAS IMPERIALISM.  We should've let it die.

Hey that whole it's capitalism they're against is much like the terrorists 'hate us for our freedoms' bs we heard the past few years.

We should of listened to FDR, Macarthur, Eisenhower, and Donovan of OSS. Not the wall street lackeys.  Guess which way we went? 

I bet you can guess.  We went imperial, and when you view our military endeavours as the next generation extension of the British Empire, you realize, they never really lost it, they just OUTSOURCED IT, to US.  A willing us, as long as we believed the bullshit and the top got paid.

This ain't our bag baby.  So throw it back at the Queen and tell her to kick rocks.

Impeach the bum.  Glass/Steagall.  NAWAPA.  Four Powers.  Credit SYstem.  Space. Nuclear. Fusion. Fusion Arc.

Or, enjoy fighting over the scraps that remain, in a failed economic system that probably crushes you 1000x more than it is currently.  Enjoy.  The Recovery is here.  Now go home.

 

Thu, 09/23/2010 - 08:23 | 599455 Grand Supercycle
Grand Supercycle's picture

Short signals detected yesterday have now increased.

http://stockmarket618.wordpress.com

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