{"id":10985,"date":"2015-08-13T07:05:01","date_gmt":"2015-08-13T12:05:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10985"},"modified":"2015-08-13T07:05:01","modified_gmt":"2015-08-13T12:05:01","slug":"the-us-china-currency-war-winners-and-losers","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10985","title":{"rendered":"The US-China \u201cCurrency War\u201d: Winners and Losers"},"content":{"rendered":"<h3 class=\"headline\"><a href=\"http:\/\/www.counterpunch.org\/2015\/08\/13\/the-us-china-currency-war-winners-and-losers\/\" rel=\"bookmark\">The US-China \u201cCurrency War\u201d: Winners and Losers<\/a><\/h3>\n<p>American politicians aren\u2019t congratulating the Communist Party in Beijing for its success in following the capitalist proverb \u201cenrich yourself,\u201d but screaming foul play: China falsifies the exchange rate of the yuan so that it can make more money off the USA than vice versa. The accusation, made by everybody from Donald Trump to Bernie Sanders, is that China\u2019s policy is killing good-paying American jobs \u2013 and a lot else besides. What\u2019s bad for America can\u2019t be caused by anything done by America, but by Chinese trickery!<\/p>\n<p><strong>America\u2019s right to success<\/strong><\/p>\n<p>The remedy for the problem is just as obvious as the blame: China must get on board with America\u2019s approved rules for international trade and commerce. If China allows its currency to free-float, then the value of the yuan will adjust, China\u2019s exports to the USA will become more expensive, China and the rest of the world will buy more products from the USA, and jobs will return to the USA.<\/p>\n<p>The assumption is that the global money traders, in their infinite wisdom, would find the \u201ccorrect\u201d exchange rate between the yuan and the dollar once they have free access to the supply and demand for China\u2019s currency. What would the correct exchange rate be? One that guarantees the success of US firms.<\/p>\n<p>&nbsp;<\/p>\n<p><span class=\"Apple-style-span\">Before this week\u2019s turnaround in response to its slump, China had been moving towards free market convertibility of the yuan. Since 2005, it had allowed its currency to gain almost 30 percent in relation to the dollar, while trying to moderate its increase. Yet the results for the trade balance with the US were exactly the same. What was inferred from this? China hadn\u2019t gone far enough. So how will we know when it\u2019s gone far enough? When America is the winner.<\/span><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US-China \u201cCurrency War\u201d: Winners and Losers American politicians aren\u2019t congratulating the Communist Party in Beijing for its success in following the capitalist proverb \u201cenrich yourself,\u201d but screaming foul play: China falsifies the exchange rate of the yuan so that it can make more money off the USA than vice versa. The accusation, made by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[2045,2160,5493,1099,188,303,305,2914,2615,839,865],"class_list":["post-10985","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-beijing","tag-chinese-yuan","tag-counterpunch","tag-currency-devaluation","tag-currency-war","tag-fed","tag-federal-reserve","tag-pboc","tag-peoples-bank-of-china","tag-us-dollar","tag-washington"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10985"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10985\/revisions"}],"predecessor-version":[{"id":10986,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10985\/revisions\/10986"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}