9/30/2010

Creating a strawman

NEW YORK (CNNMoney.com) -- Lawmakers say China's currency is unfairly cheap and passed a measure Wednesday that opens the door to tariffs that aim to help U.S. companies compete. The legislation, which authorizes the Commerce Department to impose duties on imports from countries with undervalued currencies, passed the House of Representatives by a vote of 348 to 79. The Senate, however, is not expected to take up the issue until later this year. The bill got support from both sides of the aisle, a rarity in recent sessions, with Democrats framing the legislation as a jobs issue.... China seems to be the cause of US failing economy. And to be specific, it is the Yuan that is causing the problem. By forcing the Yuan to appreciate, all the American problems will go away, jobs will be created, trade deficit will be in America's favour. And all the American heroes in the Congress are in unison, in one mind, to fight China, the new spectre, the new enemy. They have all united, Republicans or Democrats, just like they were united and stood shoulder to shoulder in their votes to invade Iraq. Fortunately China is not a pushover. Otherwise American warships will be in Shanghai like Commodore Perry sailing to Kyoto to open up Japan for trade. Well done America, the champions of free trade! Who is going to pay for this gungho, bravery and madness! The American public of course. Just like they paid with the lives of their children and public money for the invasion of Iraq. The Congressmen can thump table in the comfort of Congress and cheering everyone on. The American public will have to pay more for everything they import. No more cheap toys for Christmas.

2 comments:

Anonymous said...

With the USA now in this desperate and despondent state, more will come in the form of protectionism through increase tariffs and cancellation of free trade agreements plus legislation to prevent American companies taking factories and jobs overseas, but whether this is workable is not known.

Nevertheless, many believe that the jobs that have gone to China and India are not going to go back to USA whatever happens. They are gone forever.

China does depend substantially on USA for its exports, but the recent financial crisis also threw up the realisation that, given its rapid economic expansion, its internal demand can compensate for much of the loss in its external export market. So, given that China will loose market share on any upward revaluation of the Yuan, I think the USA citizens, for sure, will suffer as well, as mentioned by Redbean.

But since political motive always comes before citizen's welfare, sane arguments are not necessarily politically palatable for those in power.

Matilah_Singapura said...

A lot of hot air from failing politicians who are looking for a strawman to blame for their own ineptness and corruption.

What did you expect from the US Congress? The objective facts? Surely you're expecting too much!