Is this more great sounding rhetoric or is Obama going to get serious about China and their currency manipulation?
The administration has told Chinese officials that currency policy will be high on its agenda this year for economic talks with China, a senior official said on Wednesday. The White House is also weighing whether to designate China as a country that manipulates its currency, when the Treasury Department issues its semiannual report on foreign currencies in April.
President Obama signaled the tougher line on Wednesday, telling Democratic senators that the United States needed “to make sure our goods are not artificially inflated in price and their goods are not artificially deflated in price; that puts us at a huge competitive disadvantage.”
An astounding 83% of the non-oil trade deficit can be attributed to China and of that, estimates vary but a good figure is 45% percent of that trade deficit could vanish by simply getting China to stop their currency manipulation.
China really is advancing at the sacrifice of the U.S. economy. Read China, the ultimate protectionist for some eye popping statistics.
We have heard some opening salvos from the Obama administration on China's currency manipulation previously (I think about the only thing Geithner has said that made sense actually).
We suggested doing this as part of the Jobs Stimulus action item list.
Frankly, China is one hell of a tiger, so I hope this isn't just a little more huff and puff and this government gets it together to mean it this time. Jobs are on the line and if anyone didn't notice....those green jobs...uh, they are being created in China and lest we not forget, China has been busy cornering the oil market.