Just because somehow it is the Yuan's fault that America has exported its entire manufacturing industry over the past 30 years to lower cost countries, our idiot leaders have decided to take the next big step toward an all out trade war. The House of Idiot Representatives has approved legislation designed to combat the manipulation of currency by China that results in unfavorable trade conditions for the United States. As CNN reports, the legislation, which authorizes the Commerce Department to impose duties on imports from countries with undervalued currencies, passed by a vote of 348 to 79. Somehow, because it was framed as a "jobs issue", everyone in Congress went full retard and confirmed they have not the first clue about how Economics actually works. But yes, please revalue the Yuan: the next thing will be exploding prices at Wal Mart, which have so far successfully masked the fact that the US has been exporting staple product inflation. We wonder how those same "workers" on whose behalf this law was allegedly passed will feel when their bill anywhere is double what it used to be... Not to mention that their currently unemployed status will certainly not have changed.
More from CNN:
"We can talk, or we can act. International trade is a high stakes, cut-throat business, and every time we simply talk, the other side acts, and every time they act, an American loses a job," said Rep. Xavier Becerra, D-California.
China said this year it would allow its currency, the renminbi, to trade in a wider range against the dollar. But the currency, also known as the yuan, has scarcely appreciated since then, inflaming critics who charge the undervalued renminbi helps steal U.S. manufacturing jobs.
The House vote caps years of frustration for lawmakers as the United States has continued to shed manufacturing jobs, and promises of reform from the Chinese have failed to result in policy changes.
The legislation now moves to the Senate. Sen. Charles Schumer, a New York Democrat, says the body will act quickly to move the bill to the president's desk.
"We must take decisive action against China's currency manipulation and other economically injurious behavior," Schumer said on Tuesday, noting that the Senate will take up the issue when it reconvenes later this year.
"China is merely pretending to take significant steps on its currency," Schumer said. "This sucker's game is never going to stop unless we finally call their bluff."
But not every member of Congress is convinced, especially after China raised tariffs on U.S. poultry producers earlier this week and accused them of dumping product into the Chinese market.
Our question is what happens when 1.4 billion Chinese pass legislation that the Fed's QE is currency manipulation as well? Does that particular law go hand in hand with the one that states it is now illegal to hold US treasurys (because, of course, Congress realizes that when the dollar falls in value to the Yuan, all those Chinese-held USTs don't really increase in value...)