This page has been archived and commenting is disabled.
US-China Re-Retaliation - The Escalation: Senate To Unveil Bill Threatening Stiff Chinese Penalties If No Yuan Revaluation
Just a headline from Reuters for now:
U.S. SENATE BILL TO BE UNVEILED TUESDAY THREATENS STIFF PENALTIES ON CHINA IF IT DOES NOT REVALUE ITS CURRENCY-CONGRESSIONAL AIDES
We are confident China gets Reuters too.
»
- 3480 reads
- Printer-friendly version
- Send to friend
- advertisements -
Yet another example of how utterly useless our elected representatives are. Okay China, revalue. Perhaps the US can compete in the production of t-shirts and carnival prizes?
Look at the mix of goods China exports, then see how many of these goods, if any, the US still manufactures.
Our reps are even too stupid to know how to pander. Fuck'em all.
We can only hope that Brazil or Indonesia will take up the slack.
Jacks of no trades, masters of fewer. They know nothing of economics, nothing of history; they only know how to smile, give head, and take bribes. Why anyone would try to give credence to anything that comes from these whores is inexplicable.
Bravo!
Indeed. Besides, I know everything goes just peachy every time I get uppity with my bank and credit-card companies - they just roll-over and give me everything I want, honest!
These people are too stupid to be the Assistant Manager of a Burger King and we've given them trillions of dollars of other peoples' money to spend. What could possibly go wrong?
Do you really want an answer...?
No need. We're living it, daily.
I should have had the < /rhetorical > tag visible. Mea culpa.
As should I. I quite understand. There's a reason I've fired up the Rosetta Stone, Chinese style...
Rosetta Stone is pricy! It's like 1000 bucks for the whole set or whatever for one language.
Then again, I guess it's still cheaper than college tuition, which is about 1000 bucks for one class, and you'd need years and years of classes to learn anything.
An advantage of my current employ: It's "free," and I'm running it practically every night. Will probably take classes later. The personal instruction can fill in the gaps.
Bullshit. China needs to float. They are the enablers. Without them sterilizing with treasuries, the bloated consumer balance sheets would not have been nearly the size they are. I freaking am dying g for a positive real rate
Actually, your perennial public servants are quite savvy. There'll be no end to the loss of face China will suffer when the US starts bumming loans from some other favoured chump.
If we actually paid our people to produce these goods, instead of paying sweatshop labor in China, our people would actually be able to afford these goods if produced in America.
Once upon a time, Americans had manufacturing. Americans still produced the things we consume, and Americans made good livings doing so, despite paying high wages to our workers.
Then the big bad wolf came and outsourced our jobs so that the top 1% could make a few extra pennies on every transaction. All the sudden, American manufacturers couldn't compete anymore, and Americans lost their jobs.
All it would take for Americans to be able to afford goods produced in America is to give our people jobs producing those goods.
Yet somehow, the uber wealthy argue against this and the "common classes" tend to agree with them.
Newsflash, we already make most of our essentials (like food) in this country. We can do without cheap plastic spoons while we retool our manufacturing to save our economy.
It'll be painful in the short term, but the best thing we ever did for America over the long run.
Sorry, I don't think this is quite correct. They call them "sweatshops" for a reason, they pay is miserable and conditions even worse. How many Americans do you know that would work like that? China's main export is labor and they have gobs of it. We can never hope to compete with them in that market, nor do we want to IMO. America's most valuable export is innovation. So if you want to save the economy, go invent something to make life easier for the Chinese.
Edit - Grammar and to be more polite ;)
WRONG WRONG AND WRONG.
GFD, do you people PAY ATTENTION TO PRICES?
Fucking eh, I have a DeLonghi radiator that was made in Italy. Shortly thereafter, they moved production to China.
DID THE PRICE GO DOWN?
NO.
It's ALL ABOUT PROFITS. And that means PROFITS to drive bigger BONUSES for the executive class.
THAT is where the money went. We do NOT get cheaper prices because of the $.01 versus $.1 cent China-to-USA production unit cost of a plastic salad shooter.
WE pay the same goddamned tag price! They are FUCKING US with this bullshit line about the cost to us and they are POCKETING the difference.
You guys have to start looking at the price tags!
Jeez, wiffle bats are still made in the USA...I have plastic cups I got wherever that have USA made on them. Do you REALLY THINK that they charged 10x as much for these things than the China price??? NO. The difference is in the profit margin to the companies which translates NOT into bigger dividends, but into bigger bonuses.
The executive class has POCKETED the China price.
Business will charge whatever the market will bear, what do you expect?
Also, your claims are not strictly true, it depends on the market sector. Aftermarket Chinese automotive performance parts pushed at least one of the major Japanese companies to bankruptcy, for example. I've looked into selling those types of products, the margins are tiny and it makes sense for them to be this way. By and large the types of products that come out of China are relatively low-tech ones whose costs are significantly reduced not only by the cheap labour but economies of scale.
Furthermore, you fail to discount transportation costs, logistic costs, taxes, various other fees at the border, as well as pressures from board members who have vested interests in improving the company's market position, not just enriching a select few CEO's.
The vast majority of the time I find your posts quite engaging but I dislike your semi-Marxist rhetoric. You touch on important issues but you're vilifying the wrong fatcats. This is real business we're talking about; margins shrink in free-markets unlike the financial sector feeding off the placental fractional-reserve banking system that enables profits to go geometric.
I have similar feelings and have commented to friends and family about this recently, particularly after travelling to the US and seeing how much more we pay for exactly the same Made in China junk compared to you in the USA.
Typical scenario: Product X is manufactured here in Australia, with all the associated high labour costs and other overheads (e.g. my underwear). Manufacturer of X moves factory to China as "it is the only way to reduce costs and stay competitive". Product X, made in China, has the same sticker price as when it was made in Australia. Excuse me? I would have thought "staying competitive" in the market would translate to a lower price to consumers who purchase in that market. How does selling the Made in China stuff at the same price make you more competitive?
Net result:
Consumer is no better off
Local factory employees have lost their jobs
Manufacturing capability is lost
Company pockets the profits
I'm no Marxist. I just see us mug Aussies getting ripped off and I wonder where all the supposed offshore-manufacturing "cost savings" have gone. We sure don't see them.
As History dictates, there were no happy ends in exchanging of Ultimatums.
This will get more and more interesting since China
appears hell bent on denying there is a problem.
This captcha system stinks btw.
Any chance China's response will include weapons to Iran? Considering the story posted yesterday, that would make things interesting.
Election year drama is heating up!
Chuck Schumer is behind this. Which means it has been cleared with his banking pimps who have told the Chinese they need to put on a good show.
Carry on.
Saber-rattling before the denoument.
Look how fast they can move. Meanwhile, the Audit the Fed Bill...
+ mucho.
+++
Yet S604 is getting dusty as HR1207 already passed. So tell me, how truly stupid is the USA government? Anyone? Anyone at all?
Bueller? Bueller?
--------------
On another note, the REAL problem is that the strength of the Chinese currency is propping up the value of the USD. As such, the for profit private member-owned Federal Reserve can not devalue (same call inflation) the USD. Once China de-links, then the USD can fall to its honest valuation, perhaps eventually reaching the intrinsic FIAT value of near zero. Keep in mind the Federal Reserve is the THIRD such USA central bank, the two previous ones failed.
Got physical gold and silver?
Agreed that the Yuan is propping up the dollar artifically.
However, it is wrong to say that the value of the dollar is near zero.
The truth lies somewhere in between.
If the dollar drops, our exports will increase and we'll be competitive again. Every cloud has a silver lining.
We really don't WANT artifically high dollars.
You assume exports go up and that no tariffs will be added from other countries.
For now you may be right to some extend BUT once inflation kicks in and no COLA for the retired elderly and the massive amount of UE checks do not go up in numerical denomination.... Then you may get 'Zombies'.
They say there are two sides to every coin, or call it a dam and this baby has more sides and problems than a leaking dam about ready to burst at the seams.
The USA is flirting with a sleeping Dragon and is on the wrong side of the dam.
Fuck China.
Without their dollar peg, they'd be nothing.
Seriously. They are in for what happened to Japan.
I triple dog dare China to revalue instead of cannibalizing our industries in order to suppress their own people. They WANT a deadbeat yuan; it's been in their interests to build all this shit and play the game.
China's main concern is internal revolution against the insanely corrupt CCP. Without constant "growth," there's a real concern that the CCP will be overthrown. They don't want the boat rocked.
But, the collateral problem is that of peak oil - without access to growing energy supplies, they cannot continue their mercantilism. Right now, we are positioning our chess pieces to lock them out of everything outside of Russia.
Invasion of Iran is INEVITABLE. That is the lynchpin to all the energy in the Caspian region. We tried it in Georgia - look at the freaking pipeline geopolitics and the routes. Europe needs this energy as badly as anybody and they will be behind invasion even if they publicly denounce it.
Nabucco languished in EU equivocation while China built their own pipeline. We couldn't figure out how to protect a trans-caspian route to existing Georgian infrastructure to service Europe without having exposure to Iran. And there IS no other route that doesn't transit either Russia or Iran. We cannot knock off Russia, and that leaves one other nation.
This stuff is real geopolitics...it's driving EVERYTHING right now.
Look at India's air force and naval spending plans and you should be able to figure out what they see. They see what I see and what the EU and US leadership and the Chinese and Russians see.
We're rapidly approaching a point in the resource depletion game where it is every man for himself. China served its purpose as a low-cost labor center but the game of debt growth is over, now it is about who gets the lion's share of a dwindling resource pie.
Agree about the resource 'game' and there are also some 'fights' now about water rights too. It is indeed a global affair. As for peak oil... perhaps, yet China is building many nuke power plants so the USA better hop to it ASAP.
Of course things will get very messy during this transitional power play 'phase'.
If we eliminate the use if Nukes by multiple countries (virtually everyone's dead from blast or effects of fallout), China has an armed force not to be toyed with and Russia is no slouch. The USA, while they have interesting technologies, you can forget hand to hand or close combat due to the constant deterioration of that assets. But whatever, in the end if a World War breaks out it will be a big mess and like the movie War Games, NO ONE WINS THERMONUCLEAR WAR.
How about a good game of chess?
This from Matthew Simmons recently
http://www.businessinsider.com/matthew-simmons-on-the-coming-oil-and-water-shortage-2010-3#-1
Both Oil and water shortages in our future.
"China's increase in oil demand astonishing" states IEA
http://news.bbc.co.uk/2/hi/business/8563985.stm
We are building up to WWIII here, and as Celente states,
attacking Iran will be the start of it.
Resource wars are going to be a mother....
Idiots! Another misdirection play. Rant on about nothing while the banksters continue to fleece us. Wake up assholes! Congress is useless, except as a perfect example of careless spending. Nero comes to mind.
TBT may be a good bet! China's going to bail or at least demonstrate in some way that they could! The shot heard around the world.
I am shorting all fortune cookie-eaters worldwide.
I am on the fence about sweet and sour sauce.
I'd go long medium spicy general tso
Mmmm... only I'd take mine, extra-asshole burningly spicy. LOL
It'll be called "Freedom Sauce" in no time
China has just sent word to the Wal-Mart executives that unless they tone down the stupidity of the rhetoric coming from the US government, all clothing shipped from China to Wal-Mart in the future will shrink by 75% after the first washing instead of 50%.
With each earthquake California nudges a little closer to China.
How do we create more California earthquakes?
I'm sure Karl Denninger will have WONDERFUL things to say tomorrow about "Senate has balls" or some such nonsense.
Fine, if you want a five-cent dollar...
But China is a hell of a lot more productive than the U.S. and can play the fiat currency game too...!
They need 700,000 troops to form a moat when their leaders meet. We got our problems here, but compared to China, our leadership is secure.
All we have to do is take it easy with China. They are not our friends, but they have many problems. MANY.
Now if our stupid lap-dog Congress critters would just shut up and/or stop spending so damn much money (the real problem we have), maybe we could finally start seeing some real green shoots.
But, as they say in Texas, you hold your breath, you´ll die.
Take away their market for exports by increasing the value of the Yuan, and we accelerate their problems.
Why can't people see that we have much to gain and little to lose by revaluing the Yuan, even if it means the dollar drops.
The main consequence of the dollar dropping will be not buying Chinese made goods anymore. Nothing more. Is that really so bad for us over the long run?
The main consequence for them will be massive unemployment and government collapse.
Like I said, we have so much to gain from this situation.
Fine, if you want a five-cent dollar...
Already been done by the Fed and its less than 5 cents now from 1913.
The U.S. Senate is full of geezers.
Desperation. Their Keynesian policies aren't working and they need a scapegoat. Meanwhile, China seems to think that their country is more important than the US. How dare they!
China will float the Yuan when the dollar depreciates enough. Right now they are too busy on a commodity buying spree with the dollars they bought. Problem for China. The US has a Navy that enforces the property rights of our people in the rest of the world. Do they really think given the history, that with no Aircraft carriers to threaten Bananna Republics with that they can hold onto any asset, anywhere outside of China.
No need for aircraft carriers when you have a few thousand ICBMs in silos and subs around the world.
China does not have a few thousand ICBMs.
And, in case you haven't noticed, we have those too.
Nobody is going to lob a nuke in a resource conflict or else they get nuked back.
If you think carriers are obsolete, why is India currently retrofitting the Gorshkov and has broken ground on 2 indigenous carriers? Just for fun?
Control of the oceans matters. Carriers have a function beyond bombing land...it just so happens that these have been what they're used for because there hasn't been a significant naval heatup in the last 50 years.
Our CVN capability gives us the option to sink any and all shipping in or out of China even beyond the range of their supposed carrier-killing ballistic missile, even if the thing could hit a carrier in the blue water.
Check out what equities did after the Smoot-Hawley Act was passed in 1930. History doesn't repeat itself but it often rhymes.
I TRIPLE DOG DARE YOU CONgress/Obozo - go ahead and DO IT!
They do that, and I will try to get to the gold shop before you Gordon!
Why do we elect such morons?
It seems that only ass-kissing morons run for office. It's a systematic demeritocracy we've got.
Signatories must realise that the more pressure you put on China to do anything, the less likely it is to do it.
http://www.ft.com/cms/s/5cf1d07e-30dd-11df-b057-00144feabdc0,Authorised=...
LMAO at the fact they got 130 congressman to sign off on currency manipulations. I'm sure their phones were ringing off the hook because this is so high on Americans "give a shit list". What bullshit, blame anyone and everyone but yourself. What a bunch of low lifes. We are doomed. But the entire world will be on fire and the DJIA will be ticking along at 10,600.
Lead toys, poison toothpaste, leeching plastics, shitty pharmaceuticals, female international students with flat asses. Honestly, we've been getting the shitty end of this trade picture for a long time. I say fuck em'. If the Walmart of the world pisses you off as a customer, then go to another store. Even better, buy local.
Oh and to all the apologists that go "waaa...waaa...but we owe then a gajillion dollars!!". I'll remind you that when you owe the bank 20K, the bank owns you, but when you owe the bank Trillions (more than the asset value of the bank) you own the bank.
Is December 21, 2012 far enough away to get this shit-storm to critical mass?
Here's a fucking crazy idea: Stop monetary/credit expansion of US-dollars. Freeze the monetary base. See what happens to China's growth models when they have to try and contend with a deflating dollar. It's a double-whammy, the malinvestment at home finally begins to get liquidated and the Chinese suddenly have to decide between blowing bubbles and maintaining the value of the Yuan.
This is economics people, it takes two to tango. No single entity acts in a vacuum.
We been imposing stiff penalties on Iran for years. That doesn't seem to have changed much..
ucvhost is a leading web site hosting service provider that is known to provide reliable and affordable hosting packages to customers. The company believes in providing absolute and superior control to the customer as well as complete security and flexibility through its many packages. cheap vps Moreover, the company provides technical support as well as customer service 24x7, in order to enable its customers to easily upgrade their software, install it or even solve their problems. ucvhost offers the following different packages to its customers