Thursday, March 18, 2010

Obama & Econ 101

NEWS FLASH! OBAMA NEVER TOOK ECON 101


Yuan

March 2, 2010 - Washington, DC
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"President Obama has outlined a plan to double exports but you simply can't do that if you don't address the currency issue," said Ohio Senator Sherrod Brown (D-Ohio) on Tuesday. "China's current policy is out-and-out protectionism." This was said by the "most liberal" Senator according to National Journal Magazine. Why didn't Obama address the currency issue first? He did not even know or what to do about it.

Congress Urges China to Revalue Currency
Attempting to pressure China to raise the value of its currency, U.S. lawmakers,
backed up with bi-partisan support, introduced legislation this week that could lead to retaliatory trade barriers against Chinese-made products. Is the 1930 Smoot-Hawley Tariff Act that caused the Collapse of World Trade during the Great Depression being floated again? Our lawmakers don't learn from history or simply don't know about it? Guess it is so. Sad.

The bill's sponsors have correctly accused China of unfairly manipulating the value of the yuan to gain a global advantage in exporting, in effect stagnating the world's economies. Congressional leaders and many analysts believe the yuan is undervalued, compared to the dollar, by as much as 40%.

If the Chinese government does allow its currency to appreciate, analysts widely agree the move would benefit the U.S. economy, creating a more competitive trade market, while potentially generating hundreds of thousands of American jobs. Honestly, who cares about the U.S.?

Currently China is facing two large regions uprising against the Central Government for more jobs with an overheated economy that requires even more exporting to feed their hunger for more jobs. Obama has not a clue on how to handle the unwieldy Chinese situation.


March 14, 2010 - Beijing, China -
Rejecting the American demand for letting its currency yuan rise against the dollar, China today expressed apprehension over the safety of USD 770 billion US treasury bonds, a development that could see the foreign exchange markets across the world going topsy-turvy.


Does the United States lose its Triple A Treasury Bond rating? What do you think?



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