USA accuse China of "manipulating" its currency, is this legitimate critique or just politics?

Question

The RMB which is the Chinese dollar was 8.0 to one dollar in the year 2005. Now it is 6.7 to one dollar in the year 2010. That is a 20% appreciation of the chinese dollar in relation to the US dollar. Also during this time, exports into china from European countries have grown expotentially. Lets take Germany for example. In 2009 to 2010, Germany exports into China has grown 15%. China has become a big consuming country for many foreign countries to export their goods into China.

If you listen to USA media, especially from the politicians in Washington, they will claim that China is doing something wrong because the USA economy is having difficulty in exporting into China. USA claims that because the Chinese currency is not allowed to rise more with the usa dollar, it is artifically set "manipulated" at the low rate. If you ask Goldman Sachs about China, Goldman Sachs would say that CHina's monetary policy about the currency and everything they are doing is just fine. By setting the currency where it is at whether artificially or not, is Chinas perogative, it is their choice of mechanism to run their way of government and monetary policy. How you like if china tells the USA to save more and stop consuming and get rid of all that debt? Would you be offended to listen to another govermment dictating what to do, as if you are a basket case? Mind your own frekin economy! Goldman sachs says the USA polictian does what it does best, politics. Goldman Sachs says, politicians are just politicizing the chinese currency as being "manipulated" as if to say, it is wrong. In reality, it is brilliant moneytary policy that is prasied by investors around the would. the only hate comes out of washington cry babies trying to find a scapegoat for their own messedup economy, that should be no surprise to us. USA is structually going to fail as a nation unless it comes to grips with solving real problems with its culture and attitudes. A once great nation with good values, now, its a nation that is hyperventilating because it cares more with perception than in dealing with problems honestly. If you don't want to identify your true problems, and instead focus on talk up a good image, you will continue to fail and drive your debt ridden country into the abyss! Go China, USA sucs, Yippeeeeee! Go Wen JaBao, you are doing a good job, keep it up, USA is losing fast and going down to hell with all it Christian hypocrits and white people.

Answer 1

You've made so many mis-statements, I don't know where to begin. The value of China's currency is not their perogative, it is established by its relative value on the world currency markets. Any attempt by Chinese officials to thwart the operations of those markets is manipulation, and actually forbidden by our trade agreements with China. That's right, we "hypocrits" expect China to honor its trade agreements. And Nobel Prize-winning economist Paul Krugman has criticised the Chinese government for manipulating its currency, so who cares what Goldman Sachs thinks? Advise your countrymen to stop cheating with their trade policies.

Answer 2

There is some truth to it and a lot of partisan BS.



What the politicians really want is for China to instantly change by lower their value exponentially, which of course would prove to be very detrimental to China's economy.



You and I both know China is not foolish, but at the same token, given the partisan nature of our country, we are very foolish.



The good side to all of this is the USA has lost a lot of its influence economically in the world and countries are less willing to be manipulated by the political nature of our bullying.



What most people don't know is we have a large export market to China, but China's export market to us is about three times bigger. The USA needs to learn how to turn that into more gold and it would do us a lot of good if we would pay attention to what China is doing right, instead of continually pointing fingers and placing blame, all while the USA believes China's past is the present.

Answer 3

Goldman Sachs placed large bets than housing prices would not fall and if not for the bailout would be a distant memory. Everything they say is to benefit themselves so I suspect they have been taking position on the exchange rates.

Answer 4

there is a few actuality to it and a super form of partisan BS. What the politicians particularly need is for China to promptly substitute by capacity of decrease their fee exponentially, which of direction would tutor to be very unfavourable to China's financial equipment. You and that i the two understand China isn't silly, yet on the same token, given the partisan nature of our united states, we are very silly. the sturdy area to all of it particularly is u . s . a . has lost a super form of its impact economically interior the international and international places are much less keen to be manipulated by capacity of the political nature of our bullying. What maximum folk do no longer understand is we've a super export industry to China, yet China's export industry to us is approximately thrice greater desirable. u . s . a . needs to earnings a thank you to tutor that into greater gold and it would do us a super form of sturdy if we would pay interest to what China is doing perfect, somewhat of continuously pointing hands and putting blame, all whilst u . s . a . believes China's previous is the present.

Answer 5

Hell, this sounds good for the USA! If it takes less chinese dollars to equal one Us dollar, they can buy more form us! 8 to one takes more of their money to buy something, 6 to one is smaller so they can buy more now! But yes they do fluctuate their dollar to upset the Us.

Answer 6

The Chinese government openly admits it. "Just Politics"? Not so much.