US Risks Trade-Currency War With China
Had China not purchased the level of USA debt instruments that it has for the past decade or two, the USA would have fallen into an economic downturn that would make the current one look mild by comparison.
The recent passing of legislation by the U.S. Congress with the support of both parties is a clear indicator that reality does not matter, getting re-elected does.
The US Congress is seeking the appreciation of the Chinese yuan because they feel it is necessary in order to accomplish the present administration’s U.S. manufacturing revitalization plans by helping increase U.S. exports.
China has countered by stating these currency issues are more about the upcoming mid-term US and the U.S. administration's inability to put it’s own financial house in order.
Although I am a home grown, born-in-the-USA person who believes our country is still the best place to live in the world, it is my opinion that our illustrious leaders in Washington should learn from the miracle China has created in the less than 30 years instead of trying to dictate their failed economic policies to them.
A trade war is something the USA or the rest of the world can afford when times are good and could end up being catastrophic for those nations that are already suffering from poor economic conditions.
Instead of trying to push it’s agenda on the very country that has been the USA’s chief benefactor, the U.S. government should take heed their advice and begin working on getting their economic house in order.