US warns China on its currency

[ckramer]

The Bush administration warned China yesterday it must swiftly overhaul its currency system or face the likelihood of being accused of manipulations to gain an unfair trade advantage -- with economic sanctions possibly following that.

The administration has been prodding China for two years to stop linking its currency, the yuan, to the US dollar. Manufacturers and other critics, including Democratic and Republican lawmakers in Congress, say China's currency system puts US companies at a competitive disadvantage.

...

The Treasury Department's warning stopped short of finding that China was engaging in unfair currency practices.

The administration said China could be branded a manipulator of currency if the country doesn't switch soon to a flexible exchange system.

link

[Vincardog]

1. And aWoL will quit selling them our 'worthless' TBills. HA

[bpilgrim]

2. they must be scrambling to CONFORM to our DEMANDS

i'm sure they don't want to be labeled by the neoCONs as being UNFAIR - roflmao

peace

[jayfish]

3. OMG!!!

Not accusations "of manipulations to gain an unfair trade advantage"!
China must me quaking in their boots. :rofl:

Jay

[cliss]

4. I love the response from China.

Here's the article, in today's Oregonian:

"In China, central bank governor Zhou Xiaochuan said no one should expect quick action. "Our measures will only come out after we have done a good feasibility study", he said.

= meaning: we'll do what we damn well please, whether Washington likes it or not.

I LOVE it when countries flip these guys the bird. It feels so.....deserved.

[gizmo1979]

5. This is Bush's compromise

in order to get cafta passed.This way the asses will be able to say"we tried to help the U.S worker with China".I know I'm right on this,it's gotta be.Why else finally do it now?

[cornermouse]

6. Lol. They were joking, right?

What makes them think they have even the tiniest shred of credibility?

[Mechatanketra]

7. Oh, PLEASE.

As my brother pointed out to me today, complaining about an unfair trade advantage is arguing from an explicit position of weakness ... and it's logically inane to try to bully from such a position.

It's like telling someone to stop working out so much or you'll beat them up.

[Voltaire99]

8. Paper tigers

If Murricans understood how China has underwritten their spending habits by buying US debt and thus permitting low interest rates, they'd shit cookies.

Bush and Congress getting "tough" with China could go terribly awry if it calls their bluff.

[getmeouttahere]

9. this is beyond laughable....

and it looks like I was right...I kinda thought they were propping us up (China AND Japan, probably)