Misconceptions of China – Chinese Currency

Larry talks about Chinese currency and how the Western media says it is too cheap and isn’t a fair price. The media says this exports American jobs to China.

Many Americans believe that having China revalue its currency is important to America.

However, experts say that if China’s currency were allowed to flow, it would be about 1 to 5 and maybe 1 to 4 instead of 1 to 6 or 1 to 7. 

What that means is that all goods manufactured in China would become more expensive in America and Europe. Prices for products from China could quickly go up 20%

Source: ShiWoLarry

Instead of jobs returning to the US, Western companies that manufacture in China would find cheaper labor elsewhere like in Vietnam. 

In addition, changing the way China values its currency will not cause most customers from other nations to buy from the US, because labor costs in America are too high due to unions.

Larry asks, “Will Chinese goods become more expensive and hurt the US?”  He says, “Yes.”

If anything, this currency issue is more political than economical.

See Doing Business in China or return to Misconceptions of China – Chinese Wealth and Poverty

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Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too. 

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2 Responses to Misconceptions of China – Chinese Currency

  1. jonolan says:

    Just please tell me that you’ve permanently left America. I’d hate to think one of your sort was still enjoy the benefits of the nation you despise.

    • Question:
      Who said I despise America?
      Answer: Jonolan, whoever he, she or “it” is.

      What we need in America are real patriots committed (not misguided patriots) to continue improving the country as we have been doing since the Revolution (1775).

      America is about change–not standing still.

      I hear crazy idealistic conservatives moaning and groaning about going back to the ways of our Founding Fathers.

      That means a return to slavery, child labor, and women as chattel and a time when only men who own property would have the right to vote.

      America’s history is one of change. That’s why the wise men among the Founding Fathers wrote the Constitution so it was flexible but not easy to change.

      Isolationism will not solve our problems and I doubt if it is possible to isolate America and shut out the world as some out-of-date conservatives preach.

      What have true Americans patriots accomplished since 1775?

      After the Civil War (1861 – 1865), America freed about four million slaves.

      True patriots struggled for women to have the right to vote. The struggle started in 1848 and it wasn’t until 1918, seventy years later, that women could vote in national elections. It was a long, hard fought struggle against those that resist change.

      Child labor in the U.S. was another victory against those who resist change. Forms of child labor, including indentured servitude and child slavery existed throughout American history before 1938. Although individual states passed laws against this horrible act before that date, it wasn’t until 1938 that the Federal government regulated child labor setting a minimum age of employment and hours of work for children for the nation.

      Who was President when this happened? A liberal Democrat, Franklin D. Roosevelt, who served as President from 1933 to 1945.

      Thomas Payne supported a form of social security for the poor and elderly as early as 1795. Misguided patriots defeated that idea and it wouldn’t be until FDR (again) signed the Social Security act on August 14, 1935 that Thomas Payne’s idea would become reality. That change took 140 years. However, even today, misguided patriots among conservatives hate Social Security.

      Then we have the Civil Rights movement, which Truman (another liberal Democrat) signed into law with an Executive Order on July 26, 1948. Truman signed Executive Order 9981, which states, “It is hereby declared to be the policy of the President that there shall be equality of treatment and opportunity for all persons in the armed services without regard to race, color, religion, or national origin.” This is where equality among ethnic groups started.

      In 1954, the Supreme Court ruled unanimously agreeing that segregation in public schools was unconstitutional. Then in 1955, the Civil Rights movement really got going when Rosa Parks refused to give up her bus seat to a white man.

      The Civil Rights movement turned violent as those who resisted change fought back for years wanting to keep people of color as second-class citizens… Since there are still white supremacists in the U.S., true patriots must be vigilant.

      America is all about change as we work to improve life for the people. Mistakes will be made. Those who resist change will slow the process and sometimes roll it back. As long as America is flexible and open to change, it will stay a powerful country even as China’s economy surpasses the US in a few decades. Being Number 2 isn’t all that bad. Better than last place with the worst living conditions and poverty.

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