By I don’t really know enough about global economic to provide any informed opinion on all of this, but it seems to me that it is a bit hypocritical right before the G-20 meeting for the US to tell the Chinese to quit manipulating their currency when the US Treasury just issued $600 billion more US dollars:
Leaders of the world’s 20 biggest economies faced the urgent task at their summit Friday of resolving a U.S.-China currency dispute that has raised the specter of a global trade war.
But a draft of the joint statement to be issued at the end of the Group of 20 summit — obtained by The Associated Press — indicates that huge differences remain on how to deal with U.S. accusations that China deliberately undervalues its currency to gain a trade advantage. Similar accusations are being made against the United States.
After overnight negotiations by aides that lasted until daybreak, President Barack Obama, China’s Hu Jintao and the other 18 leaders filed somberly into closed-door talks being held in a conference center in Seoul.
The dispute over whether China and the United States are manipulating their currencies is threatening to resurrect destructive protectionist policies like those that worsened the Great Depression in the 1930s. The biggest fear is that trade barriers will send the global economy back into recession. A law the United States passed in 1930 that raised tariffs on imports is widely thought to have deepened the Great Depression by stifling trade.
The dim prospect for a substantive agreement “is very dangerous for the world economy,” said Richard Portes, president of the Center for Economic Policy Research in London. [Associated Press]
You can read a whole lot more on this at the link.
9:58 pm on November 11th, 2010 1
Hypocrisy is the name of the game for the US. They like ordering and telling other countries what to do, but keep silent what they do themselves.
10:32 pm on November 11th, 2010 2
The US had to manipulate the dollar BECAUSE China is keeping their currency low. Don't worry, China's bubble will eventually burst.
10:37 pm on November 11th, 2010 3
#2, then stop whining and demanding and huffing and puffing. Otherwise it makes you look like a hypocrite.
And when his this China bubble gonna burst? That's been said since years and years back, but nothing ever happens every year. Meanwhile, China's economy will be bigger than the US economy in two years:
http://english.chosun.com/site/data/html_dir/2010…
It looks like it's the US bubble that burst.
1:04 am on November 12th, 2010 4
ROK Drop Warning: Don't feed Tom the Troll.
2:21 am on November 12th, 2010 5
Why is Tom so happy about China's progress?
3:22 am on November 12th, 2010 6
The more China sells, the more Korea makes $$.
4:20 am on November 12th, 2010 7
Tom,
In the 30s, it was the Japanese and Nazis.
In the 40s, it was the Japanese and Nazis and Soviets.
In the 50s, it was the Soviets and Red Chinese.
In the 60s, it was the Soviets and Red Chinese.
In the 70s, it was the Arabs and Brazil.
In the 80s, it was the Japanese.
In the 90s, it was Chineia… China+India
In the 00s, it was the Chinese.
It will always be someone "on the verge of overtaking America"… but history shows that they don't. I would like to believe it is because America is on top of things… but it seems the real reason is because these other countries cheat and manipulate for a decade or two to almost break even… but, in the end, they are even more screwed up then America… in terms of corruption, over-regulation, misguided government interference, etc.
Like Japan's "lost decade" or the disappearance of Brazil and India or the sudden collapse of the Soviet Union, China's "IMF" is going to make a Songtan juicy look like the Virgin Mary at a Bible camp.
There is lots of stuff to stress about. America's dominance on the global stage is not one of them… because, if there is ever a REAL threat, the Smartbomb Smackdown or the ICBM Bonk-Chicky-Wow-Wow will make short work of that… with some manufactured excuse that the world will half-halfheartedly condemn… but not too loudly as they put their hand out for a few more dollars of foreign aid (less a commission to the recipient).
In the end, America is going to face some realignment… but the rest of the world, as usual, is going to face the same thing with added layers of trauma… China, included.
Store some food, water, gold, tools and ammo and watch the coming Global Decade of Disruption.
Properly prepared, it is going to be a hell of a show.
It's going to be a nightmare for the Little People.
6:58 am on November 12th, 2010 8
Me and Retired GI have reserved a cave in the wilderness. He's bringing his tank to guard us.
And I'm bringing boxes of Nongshim ShinRamyun. Where is our resident Chinese resident spy Kuoshibao?
7:47 am on November 12th, 2010 9
I guess as far as Tom is concerned, protectionism as a victory for Korea. It will be a blessing that Samsung and LG might be hit with tariffs and American industry continue to benefit from unfair advantage (bailouts and such). I recall Obama making blowing hot air about not outsourcing the auto industry jobs to nations like "South Korea" during the presidential debate.
Why is a communist nation manipulating their currency a good thing for Korea, Tom? How are Korea and other free nations supposed to compete in the market? Did you plumb forget that China actually stole chunks of our land, forced us to use their language and pay tribute, and continues to support North Korea?
Oh, but the big bad Americans! The evil Japanese! The very nations that continue to give business to our motherland!
Your inferiority complex is showing, Tom.
7:59 am on November 12th, 2010 10
And the US isn't manipulating their currency by dumping paper money into the world market? Get real.
11:54 am on November 12th, 2010 11
Tom, are you suggesting that we're pushing the value of the dollar down? If so, why isn't it depreciating against the yuan?
12:19 pm on November 12th, 2010 12
Because those Chinaman are doing the same as what you are doing. But are they the ones whining and huffing and puffing like the US?
No.
12:25 pm on November 12th, 2010 13
Tom 12, yes, the Chinese whine, huff, and puff. Just like you. But you agree, they're pushing their own currency down. Why? How does that benefit them? Why don't they push it up?
1:14 pm on November 12th, 2010 14
Yeah, the US has been begging/demanding China to let their currency appreciate for a while now, because its hard to compete against Chinese made goods.
In other words, US can't compete and wants the global economic equivalent of a 'Handicap'… Not very Capitalistic, eh? Obviously China is not going to listen to these sour grapes.
Irony? If China ever did that, American companies with operations in China would have increased costs if China, and ultimately their profitability would take a hit. Cha-ching.
1:24 pm on November 12th, 2010 15
The Chinaman strategy is very simple. Westerner fat cats who were born with silver spoons in their butt holes just don't understand. The Chinese believe in the war theory of Sun Tzu. They apply that theory onto the economy as well. To defeat the enemy in the long run, you must be patient and fool the enemy into a lull. Then you hit them hard. Right now it's not the time for them to appreciate their currency. As soon as they do that, their export products will take a hit. Keep that currency as low as you can (even if the regular Chinese suffers, but who cares about them, they're just one in a billion and a half dime a dozen fodder feed). Keep on selling to the enemy, feeding them junk after junk, and see it reel and go bankrupt (we're almost at this stage currently). Then when the collapse finally happens (the jjajang-myun is delivered), you guys are going to beg foreigners to buy up your assets. That's when the Chinaman with a $10 trillion bank account comes to the rescue and buy up your lands, institutions, houses, businesses, your technology. You will have to brush up on your Mandarin, gentlemen.
2:10 pm on November 12th, 2010 16
Tom, you agreed to stop using ethnic and racial slurs. Chinaman is one of those. Please stop using it.
2:13 pm on November 12th, 2010 17
In other words, US can’t compete and wants the global economic equivalent of a ‘Handicap’… Not very Capitalistic, eh? Obviously China is not going to listen to these sour grapes.
Artificially keeping the RMB down in order to keep Chinese goods artificially cheap runs counter to the free market, on which capitalism relies.
Trying to fix that is not asking for a "handicap"; it's trying to prevent a competitor from adding points to its own score when no one is looking.
4:37 pm on November 12th, 2010 18
Tom15, if the Chinese push their currency down as part of a plan to conquer us, we won't be doing anything wrong if we push our currency down. We'll just be defending ourselves against their economic aggression.
6:47 pm on November 12th, 2010 19
"That’s when the Chinaman with a $10 trillion bank account comes to the rescue and buy up your lands, institutions, houses, businesses, your technology."
Just like the insidious Japanese businessmen were supposed to buy up all the American real estate and businesses during the "yellow fever" crisis, right Tom?
Your half baked theory about the exotic Chinese "Sun Tzu" strategy will go over very well with the American protectionist interests, which include both political parties and various unions. Every election year they criticize outsourcing to China and spin conspiracy theory about cheap labor in Asia killing American jobs. The union would be thrilled to kill free trade and block cheap Chinese imports that compete with the expensive crap they make. They'll parrot your alarmist "the Chinamen will take us over" line, I'm sure. They're wide awake.
I don't know what's more puzzling – that you apparently believe the words coming out of your mouth, or that the rise of China (along with the destruction of the Japanese and American economy) is a good thing for Korea.
If China keeps their currency low and bombards us with their "junk", why would WE go bankrupt? If they're dumping at a loss to achieve to some grand scheme, the American government won't slap them with a tariff to protect American business? Neither party are particularly libertarian.
9:30 pm on November 12th, 2010 20
Surabol is making the same old mistakes as most stupid unsuspecting Americans who thinks they are too great to fail.
1. Chinese are not like the Japanese. You really wish.
2. When Japan was rising, the US didn't have trillion dollar yearly deficits and they weren't having problems paying the intrests on those deficits. The US was unquestionably the most economically powerful superpower. Can you say the same thing now?
3.Asia is not killing American jobs. It's China who's killing your jobs. Korea is providing you with jobs, look at all the Korean manufacturing jobs that moved to America. You guys should be more thankful to Korea.
4.China is not going to keep their currency low forever. Like I said, they're just waiting on you. Until then, China will continue to rake in as much dollars as possible to make themselves bloated with cash, buy up all the natural resources around the world, and wait. There's only one thing that can happen. American dollar goes bust, becomes worthless. The world suddenly becomes a whole different place when that happens. Do you really think all these countries that are behind you, will continue to be with you? Fat chance! Everybody is looking out for themselves, and whoever has the most cash, will be the king. And that's going to be China. It won't be outrageous as it sounds now, if the Chinese Yuan will emerge as the new world reserve currency, since there are no other replacements that I can see if American dollar goes bust. The Euro has no chance either, with their dependence on debt which is even worse than the US. That alone will appreciate the Yuan, and make China the richest and largest economy in the world over night. You think the Americans will turn protectionist? Sure, I bet you guys will try it, but fail. As the dollar completely collapse, all your businesses large and small are going to collapse as well. They'll be desperate to find foreign buyers (same thing happened in 1997 Korea). But there will be no one who would be in good economic shape to buy them, except China. It will be China riding to your rescue, not the IMF. They will put all kinds of rules and demands on you, after all they're going to loan you the money so they have that right. You must listen to them and let them buy you out. Good luck working for them for cheap wages, and you should brush up on your Mandarin because you're going to need it when you speak to your Chinese bosses.
9:46 pm on November 12th, 2010 21
I want to reiterate what I said at the beginning of #20. It's American's too great to fail attitude that has gotten the US in this trouble. You guys thought you were too great to fail, and that you will continue to be number one. You lost your hunger, and you became complacent, thinking that you were naturally born rich. This attitude is so different from the Koreans, who know what hunger means. Koreans are afraid and are on constant guard that something can happen someday that would take away everything that we worked so hard to build.
America's mistake was giving China the most favored trading nation status. You thought all Asians are the same, you thought they would fall in line, like the Japanese and Koreans before them. Well, surprise.
As for Korea, China is what you guys dealt Korea with. So now we must live with it, and work with it or die. For Korea, the best to deal with China is to work with it, not fight it. China's population is thirty five times bigger than Korea, there is no way Korea will win in an all out economic or military conflict. Korea's strategy is to subtly conquer China without letting China know nor making the Chinese realize what had just happened. China will be Korea's opportunity to ride on its back and suck on its blood for survival.
9:50 am on November 13th, 2010 22
Tom 21, do I understand it now? The Chinese are keeping the dollar high so that it will fall at a time chosen by them. Then Korea will suck China's blood. The Chinese, smart enough to take over the world economy, aren't smart enough to deal with a parasite.
10:14 am on November 13th, 2010 23
#22, well it's like this Glans. Korea as a separate entity has survived this long. As long as you work with them, and flatter them, they leave you alone. Right now they're not too happy with us because we're working with the US a little too closely for their liking.
2:34 pm on November 17th, 2010 24
The day I let a gook do anything besides my laundry or cook me chinese is the day I die.