Reply #105: A New High in the U.S./China Trade Deficit Is a New Low for American ... (propaganda) [View All]

[Ghost Dog]

I dunno if anyone's still reading this thread at this time of night, or if it's basically a waste of short-attetion-span time. But it does seem to be the case, on the balance of the evidence, that it sometimes pays to pay attention. Is it not at all possible that the so-pampered although debt-ridden and badly-invested (but highly liquid) US dollar (and the Euro also) may actually be very overvalued? Ugh.

A New High in the U.S./China Trade Deficit Is a New Low for American Manufacturing, Workers, and Agriculture
http://news.yahoo.com/s/usnw/20070213/pl_usnw/a_new_high_in_the_u_s__china_trade_deficit_is_a_new_low_for_american_manufacturing__workers__and_agriculture;_ylt=A0WTUZDTLNJFmwABgzKyFz4D
To: FOREIGN EDITORS
Contact: Meg Mullery, [phone], [e-mail], for China Currency Coalition

WASHINGTON, Feb. 13 /PRNewswire-USNewswire/ -- The Department of Commerce reported today that the U.S. trade deficit with China grew to a new high of $232.5 billion in 2006, up from $201.5 billion the previous year, according to a coalition of U.S. manufacturers, agricultural producers, and workers. The China Currency Coalition further noted that the U.S./China bilateral trade deficit exceeded that with any other U.S. trading partner.

The coalition plans to focus on Capitol Hill and the new Congress to promote legislation that will provide some defense for U.S. manufacturers, workers, and farmers who must compete against the misaligned yuan. Many international economists believe that China's currency is undervalued by about 40 percent. This undervaluation is significant because it effectively levies a tax and therefore increases the cost of U.S. exports to China, while giving Chinese producers an automatic price break on their exports to the United States. Producers in China benefit from what is, in effect, a substantial government subsidy, which allows them to enter the global marketplace with a huge price advantage.

Explained coalition spokesperson David A. Hartquist, "Americans are hurt coming and going, and many U.S. companies have concluded that the only way they can compete is by moving their operations to China. What is needed is legislation that will enable U.S. companies, workers, and farmers -- consistent with international law -- to defend themselves against the negative impact of undervaluation."

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