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Upcoming China trade war?

Congress is in debate on possible Chinese trade sanctions. China keeps their currency devalued in order to artificially lower their goods in comparison to the US. We’ve been complaining about it for years but refused to act. What China is doing violates all Fair Trade agreements. We have a right to take action.

China has admitted to the wrongdoing by recently increasing their currency 7%. A pitiful amount they hope will shut us up but nowhere close to the massive imbalance they’ve created. The second they learned of possible retaliation, they lashed out at us with venom. Every communist arm of the government began warning of a trade war, or worse, if we continue to pursue fair trade or protect ourselves. This frightened Congress immensely. The bill will soon disappear. Obama, who never supports the public on anything, expressed dismay we might talk sanctions against a Country acting illegally although those actions have cost us untold millions of jobs.

Even more damaging than lost jobs is the lost money to our economy. Each dollar that flows out of our border is a dollar we no longer have. We hand our money to China, but little comes back. This makes us poorer while they get richer. China’s economy is booming on our money.

How much money? According to the US Census Bureau on Foreign Trade, for the month of July, 2011, we exported $8.17 billion in goods to China but imported $35.125 billion. We lost $27 billion to China IN AUGUST ALONE. So far this year we’ve lost $218 billion to China and it’s getting worse with no end in sight. Multiply that by the number of years they’ve been looting us and you’ll see the total is trillions.

You ever wonder where all our money went? Now you know. It’s been flowing offshore to places like China and India and many others who export to us yet buy nothing in return. These other Countries build up while we decline. It’s simple economics. You cannot pay out more money than you receive without going bankrupt.

So this brings us back to the trade war China threatens. Who would be the big loser? It sure wouldn’t be us. They export 4 times more to us than we do to them. They would lose 4 times more than we did. In any trade war, China comes out on the short end of the stick. And they do it big time.

Source: census.gov

#chinese trade war #trade imbalance #trade war #politics #bu