April 29, 2010
Currency Manipulation—History Shows That Sanctions Are Needed
Robert E. Scott
Growing U.S. trade deficits with China—due, in part, to the Chinese government’s manipulation of its currency—caused 2.4 million U.S. jobs to be lost or displaced in manufacturing and other trade-related industries between 2001 and 2008 alone, 1 and 100 million workers experienced lower wages due to competition with imports from low-wage countries (Scott 2010b).
Ending China’s currency manipulation could help create at least 1 million U.S. jobs in the next few years, but Treasury Secretary Timothy Geithner delayed a semiannual report on currency manipulation, scheduled for release on April 15, in which the Treasury would have been forced to name China as a manipulator. There may have been sound reasons for delaying the report, but there is no reason why Secretary Geithner needs to wait another day to simply identify China—as well as Hong Kong, Malaysia, Singapore, and Taiwan—as currency manipulators and then to immediately begin formal negotiations with those countries.
read full article @ http://www.epi.org/publications/entry/pm164/
related articles ~
Witnesses at House Ways and Means Committee Hearing Allege China Undervalues the Yuan – Manipulates Currency
(Wednesday March 24th hearing) ~ Sen. Stabenow on Currency Exchange Rate Oversight Reform Act
March 24th ~ Hearing on China’s Exchange Rate Policy
China May Allow Yuan to Rise by Mid-April, Strategists Say
April 15th ~ US current, proposed law on currency manipulation