China's economic warfare! What do you think and how can we fix the problem?

Question

China threatens to crash the US dollar.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

Answer 1

boycott all products made in china,then raise the tariffs on all imports,remember in 1992 when Ross Perot said nafta would ruin our economy??looks like he was right

Answer 2

Borrowing an enormous sum of money to fund a stupid war has put us in debt to Asian countries, particulary China and Japan. You can blame the current administration for this terrible foreign policy mistake.

Having China and India as part of the global economy is better for this country, not worse. However, we have to adapt ourselves from a manufacturing based economy to a technology or knowledge based economy. Just like 100+yrs ago, we changed from an agricultural economy to an industrial economy. We just have to keep ahead of these countries technologically so they continue to buy US designed products. An example, Intel now has its target market increase by 2billion ppl by being able to sell products in China and India. Before US/Europe/Japan accounted for a market place of 1.5 billion ppl. We need to remain an innovative country to continue to win.

Answer 3

The problem as stated in the news article, is a huge reserve of U.S. dollar currency. China holds more U.S. currency than any other foreign country. We have gotten into this mess by two policies:

* Buying 5.8 times as much from China as we sell to them.
* Allowing the Chinese government to force the value of their currency to remain artificially low.

In fact, the main cause of the first issue is the second issue which means we really only need to correct one policy mistake and it is a policy of omission. We buy too much from China because the U.S. dollar is worth too much to them. When they gain one dollar from us, they can buy lunch. I know because I have bought lunch every day here in China for the past four years.

The exchange rate is currently 7.5 RMB to the U.S. dollar but it should be around 4. The only way to remedy this is to formulate a tough policy to change the currency exchange rate over the next five years with a target of 4 RMB to the U.S. dollar. When that happens, the trade imbalance will begin to correct itself and the cash reserves will begin to dwindle as China has to actually spend real money for what they import, not the falsely valued RMB of today. China has been isolated from the world economic community and left to their own secret plans. The U.S., like any fat cat, has been snoozing.

The "Group of 8" has the power to formulate such an exchange rate policy but only after it becomes the Group of 9 with the addition of China. In 1985, President Reagan forced a policy within that group to change the exchange rate of U.S. dollars compared to the basket of European currencies and the Japanese Yen. It was so effective the rate for French Francs fell from 10 to 5.6 in less than 18 months and has remained stable ever since. Similar correction affected the Yen. Before 1985, French wine was so cheap in the U.S. that few people wanted to buy California wine. Now we buy California wine for a lower price than French wine which is as it should be. Before 1985, most cars purchased in the U.S. were imported from Japan. Now a much larger percent of cars, even Japanese brands, are made on U.S. soil by U.S. workers.

Answer 4

So what is it that bothers you about China the most? The threat of economic chaos in the US or the threat of nuclear obliteration?

Seems to me the shoe is now on the other foot and a mighty big foot at that. I'm sure you've heard this one before,...
"We reap what we sow." So like it or not, better get out the sickles.

Answer 5

read the "news" article, not what you are reading into it. a number of countries are reducing their reserves of dollars. this reflects economic conditions around the planet.

if you really want to "fix the problem", convince American consumers to stop spending like drunk sailors and start saving their money.

Answer 6

It's our government's fault for allowing it.

How are we to blame when we HAVE NO CHOICE?!--
And anyone who claims we did or still do have a choice is in la la land, time to wake up.

Answer 7

2 year phase out of all Chinese imports. Raise taxes on democrats to fund rebuilding our manufacturing capacity.

Answer 8

stop shopping at Wal-mart immediately!!!!