Stabenow Wants China To Play By The Rules

DETROIT (WWJ) As Chinese President Hu spends the day in Chicago continuing his U.S. tour, Michigan Senator Debbie Stabenow is reminding the public about China’s currency policy, emphasising  a bill she’s working on to put a halt to the unfair practice.

“When they (China) sell to us, their products that they sell in the United States, get this artificial price discount up to 40 percent, because they don’t value their currency the way everyone else does. They don’t play by the rules that everybody else does.”

Stabenow says the Chinese get bids that should be going to Michigan suppliers and undercut American made products.  Right now she’s working to pass the Currency Reform for Fair Trade Act of 2011, that would make it illegal for China to float their currency practice in the United States.

Comments

One Comment

  1. Hugh Campbell says:

    China’s Innovative Way of Skinning the United States!
    Mark Twain’s, on point, used “more than one way to skin a cat”, in A Connecticut Yankee in King Arthur’s Court, follows: “she was wise, subtle, and knew more than one way to skin a cat”, that is, more than one way to get what she wanted. Thefreedictionary.com provides a conventional definition of beggar-thy’s-neighbor as: an international trade policy of competitive devaluations and increased protective barriers that one country institutes to gain at the expense of its trading partners. Under the guise of fostering ‘indigenous innovation’ in its economy, the Chinese government creatively applies its own, non-conventional, subtle version of beggar-thy-neighbor. Its version doesn’t entail the competitive devaluation of its own currency, which would enhance China’s exports and inhibits its trading partners’ exports. China’s ‘indigenous innovation’ version perpetrates an over-valuation of the currencies of one or more of its trading partners. This adversely affecting all that (those) trading partners’ trade, with all its (their) trading partners, not just trade with China. During the periods China pegged its currency to the U.S. Dollar, China’s version of beggar-thy-neighbor was 8 times as damaging to the U.S. economy as what the media refers to as “China keeping it currency undervalued”.

    In November 2003, Warren Buffett in his Fortune, Squanderville versus Thriftville article recommended that America adopt a balanced trade model. The fact that advice advocating balance and sustainability, from a sage the caliber of Warren Buffett, could be virtually ignored for over seven years is unfathomable. Until action is taken on Buffett’s or a similar balanced trade model, by the powers that be, America will continue to squander time, treasure and talent in pursuit of an illusionary recovery.

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