The U.S. says China MUST let the value of its currency rise, to discourage that country’s enormous trade imbalance with the U.S.. China says the U.S. is deliberately trying to lower the value of the dollar to make U.S. produced goods more attractive to foreign buyers and to discourage imports of Chinese made-products into the U.S.. Currency watchers say this could escalate into a world-wide “Currency War” as big importing countries line up behind the U.S., and net exporting countries side with China.
Tune in to Q&A today at 2:00ET/1:00CT and watch Richard Quest and Ali Velshi compete to provide you with the best answer to whether we’re headed for a currency war and why it matters to you
The current state of global economies is simply not productive enough to support the growing debt nations are incurring. The United States economy is obviously in terrible shape. We all are very aware that steps like purposefully eroding the worth of the dollar to sell American products over seas is a very dangerous step. The repercussions are like a tsunami sloshing around in the ocean. You never know what damage it will cause. How likely is it that we will damage other economies to the brink of disaster by our misguided move? What repercussions are we likely to see here in the United States? I have already noticed the price of gasoline going way up because of this misguided venture. How bad is this going to get here in the good old USA?
When the dems,repubs and the Chamber of Commerce finish giving China the rest of our jobs that is the currency that will dominate the world.
I was just watching CNN and you were talking about the jobs in China, India or any other foreign country. Remember, Both India & China have a population of more than 1Billlion. Any jobs that go to those countries, will be used up even before you send them there.
The companies that take these jobs there, already have recruited people, have them on bench and then assign them for these jobs. So, the chance of an American getting a job in China or India is dead remote. Think, China might have 2 or 3 dialects of Chinese, but India has more than 26 official language and there are some states in southern india, when they don't speak Hindi. Which one would you master.
The reason why people migrate from these countries to USA, is that the probability of getting a job here in the SU, is much higher than the job in India or China. Also, the jobless claims in those countries are much higher than our current number in the USA.
Hope this explains you well why it works only one way.
Actually the appreciation of Chinese yuan increases the US trade deficit from the fact that yuan has increased 20% ever since 2005, when the deficit began to soar . Chinese yuan is undervalued as well as all the currencies in Asia. The problem that US encountered is that stuff imported from China is indispensable, like textile, toys, cheap stuff in Walmart. Because US is a much developed country, if the industries were moved to US again, 5 million Chinese would lose their jobs while 1 million Americans gain jobs due to the machine usage.
I sure hope not. In my mind, that would be the worst thing that we could do.
why are you people not talking about a revaluation in currency in such
places as Vietnam and Iraq.