This week, Senator Schumer (D-NY) and Lindsey Graham (R-SC) were in China to
persuade the Chinese Government reevaluate their currency policy. Currently,
China's currency (YUAN) is very cheap compared to Dollars, about 1:8 ratio. That
enables China to export more goods, and consequently, protect its own economy
against foreign imports.
U.S had a 200 billion (with China only) trade deficit last year.
The bill, which would be introduced to congress this Tuesday, would punish
China by slapping a 27% tariff on all the imported goods unless China strengthen
its currency.
Additional Info:
The Smoot-Hawley Tariff Bill (which imposed strict tariffs on all foreign
products) was passed after the stock crash in 1929, the bill largely contributed
to the Great Depression which followed. After the bill was passed, a series of
foreign countries retaliated against U.S. by passing their own tariff bills.
Given such back ground guide, here are some questions to consider:
Should such a tariff bill be introduced?
What are some of the consequences?
Are there any extra clauses responsible for such a bill? (DuBai's takeover,
anyone?)
Look we are getting to dependant on China if we keep this up we will be at there
whim. But we are so deep in the mud that i don't know how to get out, i think a
tarrif might be a good idea but the only problem is if they want to they could
at any time ask for thheir money back so to speak and that at this point would
not help the United States. Right now it's a game of Chess and China has the
U.S. Cornered. Can we get out possibly but that would mean us making our own
products and moving industries like steel back to the U.S., we will need to make
our own toys, T.V. aand other items bbut since compaines refuse to pay decent
wages they move to China.
In the end it's all about Avaris and Greed, the companies have to be willing to
move back to the United States.
This week, Senator Schumer (D-NY) and Lindsey Graham (R-SC) were in China to persuade the Chinese Government reevaluate their currency policy. Currently, China's currency (YUAN) is very cheap compared to Dollars, about 1:8 ratio. That enables China to export more goods, and consequently, protect its own economy against foreign imports.
U.S had a 200 billion (with China only) trade deficit last year.
The bill, which would be introduced to congress this Tuesday, would punish China by slapping a 27% tariff on all the imported goods unless China strengthen its currency.
Additional Info:
The Smoot-Hawley Tariff Bill (which imposed strict tariffs on all foreign products) was passed after the stock crash in 1929, the bill largely contributed to the Great Depression which followed. After the bill was passed, a series of foreign countries retaliated against U.S. by passing their own tariff bills.
Given such back ground guide, here are some questions to consider:
Should such a tariff bill be introduced?
What are some of the consequences?
Are there any extra clauses responsible for such a bill? (DuBai's takeover, anyone?)
Look we are getting to dependant on China if we keep this up we will be at there whim. But we are so deep in the mud that i don't know how to get out, i think a tarrif might be a good idea but the only problem is if they want to they could at any time ask for thheir money back so to speak and that at this point would not help the United States. Right now it's a game of Chess and China has the U.S. Cornered. Can we get out possibly but that would mean us making our own products and moving industries like steel back to the U.S., we will need to make our own toys, T.V. aand other items bbut since compaines refuse to pay decent wages they move to China.
In the end it's all about Avaris and Greed, the companies have to be willing to move back to the United States.
I hope my opinion was interesting.
Shinsengumi89
ps. replies welcomed