Chinese fury as US Senate passes currency bill
China can sink the United States economically without firing a shot. Satan’s own pawns have maneuvered themselves into losing positions. Things will steadily go down hill. There is no climbing back out of this pit. All countries except for the E.U. and China will be bankrupt as this fall continues. Those two kingdoms will push against one another until war breaks out.
China has a right as one of the U.S. largest lenders to inspect its gold reserve. Not if, but when that happens, the real truth of this country being bankrupt will come to the light.
Long frustrated at the alleged job-killing impact of China’s forex regime, Democratic and Republican senators came together Tuesday to pass the bill, but it faces bleak prospects in the Republican-led House of Representatives.
“We are in trade war. But today we’re fighting back,” saidDemocratic Senator Sherrod Brown, one of the bill’s champions, defying the White House’s refusal to back the bill at a time of renewed global economic unease.
The proposal, powered by a tide of US voter frustration at a sour economy and high unemployment ahead of November 2012 elections, envisions retaliatory duties on Chinese exports if the value of the yuan is unfairly “misaligned”.
But Republican House Speaker John Boehner has signaled that he will not bring the legislation to a vote, calling it “dangerous” to economic relations.
China, accusing the US senators of scapegoating it during an election year, said the bill flouted World Trade Organization rules and would “seriously” harm relations between the world’s number one and number two economies.
“It is a serious breach of WTO rules, which cannot solve the US’s own economic and employment issues, and will… seriously interfere with Sino-US economic and trade relations,” said foreign ministry spokesman Ma Zhaoxu.
The official Xinhua news agency said “what the US Senate did planted a ticking time-bomb that may ignite a potential trade war between the world’s two largest economies.”
President Barack Obama last week accused China of “gaming the trade system” in a way that hurts the US economy, but declined to back the legislation and worried it could violate WTO rules.
Many in Washington agree that China keeps the yuan unfairly low against the dollar, giving its goods an edge of as much as 30 percent over similar US products, widening the trade deficit and costing American jobs.
But the measure’s opponents, stressing the bill’s toll on China ties, also warn that a rise in the yuan would boost manufacturing and jobs in countries such as Vietnam or Malaysia — and not in the United States. – Yahoo News