4 ms·

Does anyone have an idea about the expected global response to the Secretary of the Treasury labeling China a currency manipulator?

by adt2bt 10y ago

fredgrott 10y ago
China had that label before but it was stated in public hence the previous private monetary talks between US, China, NK, etc..its just now out in the open
fredgrott 10y ago
China had that label before but it was stated in public hence the previous private monetary talks between US, China, NK, etc..its just now out in the open
netule 10y ago
Secretary of the Treasury is a member of the President's cabinet, so I'm sure Trump will appoint a willing implement.
ianai 10y ago
If it works out to impeding trade with China in anyway it just acts to slow our economy. We are not going to become more competitive with 1+ billion people who are willing to work without any labor protections by saying we won't do business with them. We're just sanctioning ourselves from essentially the world's manufacturing depot.
- loceng 10y ago
  It could result in jobs for locals - however then investment needs to be made to support the manufacturing, educating skilled workers, etc.
  - ianai 10y ago
    In the sense that we would be doing to ourselves what we did to Cuba.
    - loceng 10y ago
      Suppose you're right, however the U.S. is in a much different situation than Cuba resource wise - education, networks, investment capital, etc.
- laichzeit0 10y ago
  And who exactly would be importing all these cheap Chinese goods then?
  - gcp 10y ago
    The rest of the world, whose citizens will see a net increase in buying power and thus wealth, because of the identical supply but reduced demand. So they'll get richer overall and a part of them will lose their jobs.
spinlock 10y ago
Good question. How did they react after the Clinton Administration put them on that list?
twblalock 10y ago
http://www.economist.com/news/asia/21709923-there-risk-trade-war-between-america-and-china-what-will-donald-trumps-victory-mean http://www.economist.com/news/asia/21709923-there-risk-trade...: > He promises to label China a currency manipulator, but the only consequence of that would be that America would have to engage China in talks on the currency’s value, which would have no practical effect. The downside is pissing off China, which the US needs to get along. There is no upside -- China won't change its behavior because of a label.
- gozur88 10y ago
  Chinese officials won't be pissed off. They understand politics. The difficulty will be in keeping a straight face during talks designed to go nowhere.
  - twblalock 10y ago
    > Chinese officials won't be pissed off. They understand politics. Whether or not they are genuinely pissed off, they act offended at the bargaining table and make negotiations more difficult than they might have been. They have been known for doing that kind of thing in the past because it plays very well with the people at home.

Does anyone have an idea about the expected global response to the Secretary of the Treasury labeling China a currency manipulator?

by adt2bt 10y ago

Does anyone have an idea about the expected global response to the Secretary of the Treasury labeling China a currency manipulator?

fredgrott 10y ago

China had that label before but it was stated in public hence the previous private monetary talks between US, China, NK, etc..its just now out in the open

fredgrott 10y ago

China had that label before but it was stated in public hence the previous private monetary talks between US, China, NK, etc..its just now out in the open

netule 10y ago

Secretary of the Treasury is a member of the President's cabinet, so I'm sure Trump will appoint a willing implement.

ianai 10y ago

If it works out to impeding trade with China in anyway it just acts to slow our economy. We are not going to become more competitive with 1+ billion people who are willing to work without any labor protections by saying we won't do business with them. We're just sanctioning ourselves from essentially the world's manufacturing depot.

loceng 10y ago
It could result in jobs for locals - however then investment needs to be made to support the manufacturing, educating skilled workers, etc.
- ianai 10y ago
  In the sense that we would be doing to ourselves what we did to Cuba.
  - loceng 10y ago
    Suppose you're right, however the U.S. is in a much different situation than Cuba resource wise - education, networks, investment capital, etc.
laichzeit0 10y ago
And who exactly would be importing all these cheap Chinese goods then?
- gcp 10y ago
  The rest of the world, whose citizens will see a net increase in buying power and thus wealth, because of the identical supply but reduced demand. So they'll get richer overall and a part of them will lose their jobs.

spinlock 10y ago

Good question. How did they react after the Clinton Administration put them on that list?

twblalock 10y ago

http://www.economist.com/news/asia/21709923-there-risk-trade-war-between-america-and-china-what-will-donald-trumps-victory-mean http://www.economist.com/news/asia/21709923-there-risk-trade...: > He promises to label China a currency manipulator, but the only consequence of that would be that America would have to engage China in talks on the currency’s value, which would have no practical effect. The downside is pissing off China, which the US needs to get along. There is no upside -- China won't change its behavior because of a label.

gozur88 10y ago
Chinese officials won't be pissed off. They understand politics. The difficulty will be in keeping a straight face during talks designed to go nowhere.
- twblalock 10y ago
  > Chinese officials won't be pissed off. They understand politics. Whether or not they are genuinely pissed off, they act offended at the bargaining table and make negotiations more difficult than they might have been. They have been known for doing that kind of thing in the past because it plays very well with the people at home.