Now, thought the title may cause more stir than the actual content of this article, I would like to point out a well-written editorial about the economic situation between the United States and China. It's a good read, and it does help put the economic conflicts between the United States and China into perspective. I think this guy is coming out with a book soon, but his editorial is a good enough read:
http://www.reclaim-america.com
Post your thoughts.
-----------------------------------
Please post content along with links when possible.
Thank You, Ronald Reagan for your U.S. job promotion plan!
Shame on you, George W. Bush, for trashing it!
Your 1988 parting gift to the country you loved (known in U.S. law books today as 22 U.S.C. 5301 et seq.) and the KNOWLEDGE AND POWER it has given to your fellow Americans to put the U.S. back in global business and re-hire millions of jobless Americans - all strictly within the existing rules of the World Trade Organization to which, as you well knew, we belong as upbeat advocates of a better and fully employed free trade world
Reagan's law, supported in Congress in 1988 by Senator John F. Kerry among others, gives the U.S. the right to take action, including raising tariffs, against any country that subsidizes its own exports or penalizes imports from the U.S.. It also provides the right to raise tariffs on any country that artificially depresses its currency exchange rate so that it lowers the price of its imports into the U. S. It not only gives the U.S. the right to take these actions, it requires that the Secretary of the Treasury certify that each country's exchange rates are not manipulated and to certify that countries do not subsidize exports or otherwise discriminate against U.S. products. If the U.S. Treasury Secretary can't certify that such trade is free of currency rate discrimination against U.S. products, then he is, in effect, required to take action against these countries.
The problem is that virtually all countries either subsidize exports or manipulate their exchange rate against the dollar. The U.S. has been so lax for so long that other countries have come to depend upon virtually unconditional access to the U.S. market. China sets its Yuan currency exchange against the dollar at about 40% below the Yuan's true value.