Kudos to the House for passing this legislation

[golfguru]

China targeted in bill on currency manipulation
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WASHINGTON (AP) -- The House has approved legislation that would allow the U.S. to seek trade sanctions against China and other nations for manipulating their currency to gain trade advantages.

The 348-79 vote Wednesday sends the measure to the Senate, where its prospects are unclear. Senate supporters hope to get a vote on a similar proposal after Congress returns following the November congressional elections.


http://finance.yahoo.com/news/China-targeted-in-bill-on-apf-953131207.html?x=0&sec=topStories&pos=main&asset=&ccode=


China is the world's biggest counter-feiter. They are shameless in copying intellectual
property from other countries. Whether it is books, Music CD's, Movie DVD's, Name brand
goods such as purses & luggage, Rolex watches, Callaway & Taylormade golf clubs,
you name it they copy it if it is an expensive item. I am personally a victim of fake
golf clubs bought on ebay manufactured in China.

And to make things worse, the Chinese keep their currency, Yuan, artificially low so that
American made products are more expensive in China than necessary. So, I am happy to see
the House has passed this legislation. The 348-79 vote shows it has large bi-partisan support.

[jtuck004]

1. What makes anyone think this is going to do anything but drive up prices?

The Chinese are still going to counterfeit anything they can, and they have plenty of customers in the now global world outside of the U.S. Ask Walmart - they are spending $4 billion to open up South Africa which will be a huge new market for Chinese goods.

Will they be hurt by losing some of our business? Sure. Will we be hurt as well? Without doubt.

I can't help but think that it would be better for the gov to subsidize an American factory and compete with them on our soil, instead of trying this strategy. Either direction is going to cost us a huge amount, but the former would create jobs and bring some manufacturing online. The latter will just increase prices for people with no money and offer no sustainable future. On the other hand the Representatives can probably have their costs underwritten by lobbyists.

The House geeks are just pandering to their voters instead of providing leadership. Then again, it's the House, not Mensa International.

[jtuck004]

2. Was listening to some manufacturing talk on NPR

and they were describing the effect of yuan appreciation on Chinese merchandise. For example, a spring that used to cost a dolar here was 10 cents in China. If the Yuan were to become more valuable, even at it's top the spring would likely cost 20 cents, and the one fromt he united states would still be a dollar.

Their point was that things are so cheap there that even with tariffs it is likely they would still be the source.

++++++++++++++++++++++++++++++

Even if ridiculous tariffs appeared, the manufacturing would shift to other economies where it would still be just as cheap.

Don't know, but I thought it was worth considering.

Maybe the answer is to look to what we can manufacture to move into the 22nd century. Maybe mag-lev trains, home-based silicon factories - whatever it is, we can't go back to the old ways for a lot of things - t shirts, maybe auto parts, certainly low cost electronics.

I just don't see how we support what we have, unless those below the wealthy are willing to continue to live with a continual
decrease in the standard of living they have enjoyed...and so far I don't see anything much except aging whiteys with tea bags on their hats doing much about it...the kids have never owned anything and don't think there will be anything for them to protest for anyway.