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%
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.
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