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View Diary: Making It in America: Building the New Economy (41 comments)

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  •  no way WE can remove the peg....which has been (0+ / 0-)

    there for a long time....when in a hole...stop digging.

    •  We have pressured third world countries to float (0+ / 0-)

      We have pressured third world countries to float their currency when they borrow from the IMF.

      Why should we trade with a country that is unfairly trading with us?

      If China does not float their currency,  then we should apply import tax on goods that we want to manufacture in the US.  We should at least protect our automobile, furniture, green jobs,  high tech
      industry --apply import tax or outsourcing tax to have a level playing field.

      If we dont then we will lose our technological and manufacturing knowhow.

      If currency is fair,  America will be very competetive.  And there will be jobs for everybody, even for China.

      I bet once China floats their money,  there will be a boom in the US --- more businesses hiring Americans because it will become apparent that it is cheaper to produce here than import from China.

      Dont let the LIARS win. Stand up for TRUTH! Stand up for Health Care Reform!

      by timber on Sat Oct 24, 2009 at 05:57:36 PM PDT

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      •  Why should China continue to buy Treasury Notes? (0+ / 0-)

        Maybe you better think this through.

        Ask me about my daughter's future - Ko

        by koNko on Sun Oct 25, 2009 at 07:51:57 AM PDT

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        •  I think you are right (1+ / 0-)
          Recommended by:

          China and then Japan are our biggest investors. Japan probably won't recover very well.  China is dumping reserve currency in dollars.  As well as all the BRIC countries.  Brazil, Russia, India and China.

          Additionally keeping the interest rates low will help home buyers, but not attract foreign investors.  A simple look at the 20% loss of the dollar since March shoes this.  

          My biggest complaint.  Treasury loaned at no interest rate to banks.  Banks invested back in Bonds.  This created the feel good effect of both the banks and Treasury feeling solvent.  It was easy money for the banks.  No interest on the loan, but guaranteed money in return.  

          We are in a real economic down spiral here.  If you looked at the housing market it looks good, until you realize Bush and Obama okay'd the "No Foreclosure" on Fannie, Freddie, Ginnie and VA loans.  Nearly 70% of the market.  And then take a look at why banks are not foreclosing on houses.

        •  China is giving us a credit card (0+ / 0-)

          To import from China,  buy their goods,  effect technology transfer to China.

          If China does not buy our treasury notes --then who is going to import from them.  The recession in the US also affected China because we decreased our exports, causing many Chinese to lose their jobs.

          Floating the Yuan will be fair to both countries because both currencies will try to find its real value.  

          It is like Macy's or Sears providing credit to customers or Best Buy having a no interest 12 month no payment so that customers will buy their goods.

          Dont let the LIARS win. Stand up for TRUTH! Stand up for Health Care Reform!

          by timber on Sun Oct 25, 2009 at 03:49:56 PM PDT

          [ Parent ]

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