What??? Obama Treasury —– China Not A Currency Manipulator!!!

 

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From Breibart…..

Obama Admin Study: China Not a Currency Manipulator

On Tuesday, the Obama Treasury Department sparked bipartisan outrage when it released a report denying that China manipulates its currency, a belief widely held by Democrats and Republicans alike.

By artificially lowering the value of its currency, Chinese companies sell products and services at lower prices than their American competitors. That means fewer U.S. jobs and more outsourcing to China. 

I won’t bore people here with the details, because most of the readers here know and understand what the Chinese are doing.  So, I’ll just briefly describe it here.

The Chinese have tied their currency to the value of the US dollar.  They do this so their currency can be artificially cheap, causing labor prices and other things to be lower than everyone else.  As the dollar weakens, the Chinese also weaken their Yuan.  This continues to provide an incentive for the producers to produce in China.  Typically, as one economy strengthens and another weakens, then the strengthening currency will raise in value relative to the one weakening.  Let’s look at a couple of graphics.

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source

Notice the two differences in the motion of the currencies?  This is an obvious telltale sign of currency manipulation.  Let’s look at another currency and how it performs against the Dollar and the Yuan at the same time. 

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source

The Euro’s performance against the Dollar and they Yuan are exactly the same, with an ever so slight lag by the Yuan!  Given the economic differences of the US and China, this is an impossibility without manipulation.  But, our federal government refuses to label China as a currency manipulator. 

Well over half the US population voted for this serial liar.  I wonder if they’ll make the connection about who is in the pocket of China and who wasn’t.  …….. Naw, they won’t. 

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8 Responses to What??? Obama Treasury —– China Not A Currency Manipulator!!!

  1. Scott says:

    So for what reason would someone say that manipulation is not happening? What motivation is there to say that? I reason one can only speculate, but it just seems odd to me.

    -Scott

  2. DirkH says:

    One must give Obama one thing: He’s the most careless liar since Kim Jong-il. He just doesn’t care, he makes it up, even wikipedia leftists describe in detail how China manipulates its currency (well they are probably rewriting it just now to conform to the party line).

    • suyts says:

      Exactly true. He doesn’t care if the lies are believable or not. He knows the propaganda extension of the party, the LSM, will run cover for him. Even if originally they’re incredulous to his assertions.

  3. leftinbrooklyn says:

    I don’t think the Treasury Dept. is actually saying the Chinese don’t manipulate, they’re just saying an evil, anti-Buddhist video forces them to. Did Rice move to Treasury?

  4. Bruce says:

    China can sell down their holding of Treasuries, which would force interest rates up and potentially cause a bond cliff, as happened in Spain. Rising rates for Treasuries would be very very bad since at 2% interest the cost is already $340 billion per year.

    Bernanke is slowly nationalising long dated Treasuries through Operation Twist. This lowers the chance that China will play this card. But the threat is there. So Obama needs to keep China reasonably sweet for the moment.

    In theory the Chinese should want the US to do reasonably well, so they can sell them lots of stuff and make money. In practice the nationalists in China are in a very bad mood at present, subsequent to the Bo Xilai disaster (since he was their boy). They aren’t being particularly reasonable or logical right now.

    • suyts says:

      China has so many socioeconomic difficulties ahead they will not be reasonable nor logical for many years to come. The only way to avoid these problems would be to give more freedom and economic control to their people. That won’t happen.

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