Chinese currency 40% undervalued

The U.S.-China Exchange Rate Squeeze

To read full nytimes.com article click on "The U.S.-China" above. Begin quote.

WASHINGTON — Say there was a way to create a half-million American jobs over the next two years without adding a dime to the debt or deficit. And say it would also revive moribund Rust Belt factories, reduce the country’s gaping trade deficit and help stabilize the international economic system.

Related

• U.S. Steps Up Criticism of China’s Practices (September 17, 2010)

All of this would occur, some economists say, if only China would stop manipulating its currency, keeping it artificially undervalued as a means of boosting its exports and fueling its tremendous economic growth. end quote.

I was also reading another article at nytimes.com by Thomas Friedman and he was saying that since China is run by Scientists. begin quote.

“There is really no debate about climate change in China,” said Peggy Liu, chairwoman of the Joint U.S.-China Collaboration on Clean Energy, a nonprofit group working to accelerate the greening of China. “China’s leaders are mostly engineers and scientists, so they don’t waste time questioning scientific data.” The push for green in China, she added, “is a practical discussion on health and wealth. There is no need to emphasize future consequences when people already see, eat and breathe pollution every day.” end quote.

if you want to read the Friedman article it is also at nytimes.com at:

• Op-Ed Columnist - Aren't We Clever?

   

  If you look at both these articles you see how smart China is being and just how stupid in comparison the U.S. is being as a nation right now. Although another way to look at it would be the U.S. trying to play by international rules and China disregarding rules right and left and getting ahead any way it can.  But if you look at the incredible suffering and millions of deaths and more the Chinese have had to endure the last 100 years and more what they are doing makes complete sense. They are just trying to take care of their own so the nation of 1.4 billion or more doesn't just come unglued at some point. When you consider that only 300 million Chinese have a standard of living like the U.S. and the rest only make an average of 3600 dollars a year it is mostly just about survival pure and simple and not directed personally at the rest of the world.

  Most Americans have not been to see just how difficult life can be in other parts of the world but now we live in an age of globalization so we too must find a way to compete in this much more difficult world.