A good primer on Currency and its' impact on global trade, economics and politics.
Adopting China’s Tactics in Currency Fight - NYTimes.com
Monday, October 4, 2010
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About Me
- Anthony J. Avallone
- Professor of Management at Berkeley College, teaching Online.
6 comments:
I say its time to share the pain! If China would just play along and let their currency appreciate, our exports will go up which means we will have a much stronger leg to stand on in competing markets in China. Most importantly, our unemployment rate would finally begin to go down.
As stated in the article China is only doing what it saw the U.S.do in the 80's It's a catch all game with everyone trying to get the most for themselves. This cycling is vicious and erroneous for the little guy. We don't know what China is really planning by not appreciating their currency and with all the technological advances they are making in their country it would not surprise me if this was a stalling tactic to hit the economy with the big guns when they come out with some advances no one else has thought of yet. After all they are very smart people.
I see it this way China is only doing this because of what we did back in the 80s. So therefore we should use it to are advantage. We should know how to work this situation if they are taking it from us. Maybe then our unemployment and everything else going bad will be the way it should be. I think this would be a good and bad thing for us a whole but we should take advantage of the situation and protect ourselves.
I think that the president has made a mistake. The US imports almost $300 billion dollars of merchandise a year from China.(http://www.uschina.org/statistics/tradetable.html) and to add a 35% tariff on imports I believe would hurt out economy further. We cannot afford to continue to damage the relationships we have with our allies, and should try our best to continue progressing with them. The fact is that the US is not a manufacturing country anymore. We are focused on service. We provide every type of service, and do it well. It is just not cost effective to make anything in the US anymore. That is why Americans depend on the goods that are shipped into the states from other countries like China. In the end I will still be a supporter of the Obama administration, but at times I will disagree with some of their actions. I do believe that President Obama is doing what he can to help our economical crisis.
It's good that the US has given China taffifs for not appreciating their currency. China's attempt at staying competitive in the export market and keep up with the cost of goods. There are many differet reactions to the as stated in the article such as possible loss of jobs. I think it's hard to blame just China for the loss of jobs since it seems that under appreciating currency seems to be a world wide epidemic because China is not the only country who has over appreciated their currency.
I think that by China not appreciating their currency will really hurt eveyone in general. I understand that the US did this in the 80's however I think that we, the US should play this smart. I think the play by the President was a smart one so that now we could come to the table and compromise.
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