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The U.S. put economies including China, Japan and Germany on a new currency watch list, saying that their foreign-exchange practices bear close monitoring to gauge if they provide an unfair trade advantage over America.
The inaugural list also includes South Korea and Taiwan, the Treasury said Friday in a revamped version of its semi-annual report on the foreign-exchange policies of major U.S. trading partners. The five economies met two of three of the criteria used to judge unfair practices under a February law that seeks to enforce U.S. trade interests. Meeting all three would trigger action by the president to enter discussions with the country and seek potential penalties.
Interesting that Germany is on that list. Are they worried that the EU engages in unfair trading practices? I personally don't think we should try to anger the EU, trade between the US and the EU has been fairly even over time. Germany just has a large trade surplus because its economy is so much better than the rest of the Eurozone. China is probably the only one on that list with blatant currency manipulation.
I agree that more regulations should be put on China. However putting huge tariffs on all of our trade partners will hurt the economy more than it helps it. For example Boeing would have to move large portions of its production outside the United States in order to avoid the tariffs. Airbus has recently moved one of their factories to the US while Boeing planes are still being exported from the US to the EU. Companies like Ryanair and Norwegian Air have hundreds of Boeing planes on order ready to be exported from the EU to the US. Examples like this show that the US trade policies haven't been total failures and its not all doom and gloom like Trump tries to portray it.
Interesting that Germany is on that list. Are they worried that the EU engages in unfair trading practices? I personally don't think we should try to anger the EU, trade between the US and the EU has been fairly even over time. Germany just has a large trade surplus because its economy is so much better than the rest of the Eurozone. China is probably the only one on that list with blatant currency manipulation.
I agree that more regulations should be put on China. However putting huge tariffs on all of our trade partners will hurt the economy more than it helps it. For example Boeing would have to move large portions of its production outside the United States in order to avoid the tariffs. Airbus has recently moved one of their factories to the US while Boeing planes are still being exported from the US to the EU. Companies like Ryanair and Norwegian Air have hundreds of Boeing planes on order ready to be exported from the EU to the US. Examples like this show that the US trade policies haven't been total failures and its not all doom and gloom like Trump tries to portray it.
Euro is depreciating at an unprecedented rate recently.
And many expect it will move below parity.
Now if this happens we have a very scary situation.
True the Euro has been depreciating recently. The reason for this is because the US economy has been doing better than the Eurozone economy in the past year. I'd rather have a higher valued currency with a good economy than a devalued currency and a recession. There are certainly positives and negatives to free trade and we could spend all day arguing about them haha. And the Euro did fall below parity in 2000-2001 so the current exchange rates aren't unprecedented.
One thing I agree with you on is China's unfair trade practices. The TPP is basically a trade agreement that says FU to china so it will be interesting to see the details on how that will play out. Free trade with countries like Vietnam might hurt Chinese jobs more than it hurts American jobs.
True the Euro has been depreciating recently. The reason for this is because the US economy has been doing better than the Eurozone economy in the past year. I'd rather have a higher valued currency with a good economy than a devalued currency and a recession. There are certainly positives and negatives to free trade and we could spend all day arguing about them haha. And the Euro did fall below parity in 2000-2001 so the current exchange rates aren't unprecedented.
One thing I agree with you on is China's unfair trade practices. The TPP is basically a trade agreement that says FU to china so it will be interesting to see the details on how that will play out. Free trade with countries like Vietnam might hurt Chinese jobs more than it hurts American jobs.
I wish i could believe that.
It may hurt China but it'll totally destroy our job market.
This thing will be 10x NAFTA!!
Free trade with these countries is basically saying bye bye to our manufacturing jobs.
It may hurt China but it'll totally destroy our job market.
This thing will be 10x NAFTA!!
Free trade with these countries is basically saying bye bye to our manufacturing jobs.
I agree with you the TPP might not be the best idea. I'm more in favor of the TTIP, there are a lot more fords driving around in Europe than in Japan. Also I would love to see better harmonization of US EU standards so more European only cars could enter our shores but that's just me being selfish .
So the Treasury Department has put together a list of countries that manipulate currency values. I don't think I need to hold my hat. Starting at home, are there any countries that do not manipulate currency values?
...I don't see the problem. If we were running a surplus with China, would we really be okay with their currency being used in general circulation here?
...maybe there is more to it that I don't inderstand?
...I don't see the problem. If we were running a surplus with China, would we really be okay with their currency being used in general circulation here?
...maybe there is more to it that I don't inderstand?
So far China has severely restricted the export and use of yuan in most of the world. Today it would be of no use in the USA. But that is finally changing, and maybe in a decade or a generation of time we will have the opportunity to gain with yuan based investments.
So far China has severely restricted the export and use of yuan in most of the world. Today it would be of no use in the USA. But that is finally changing, and maybe in a decade or a generation of time we will have the opportunity to gain with yuan based investments.
Our trade with China is done in USD not yuan.
And for the better, All we have to do is write them a check.
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