Secretary John Snow Says Bush Will Not Push China or Revaluating the Yuan
It was announced that President Bush would not push China on revaluating the yuan.
Here! Here!
It wouldn’t do any good anyway.
American goods will be cheaper to buy IF somebody wants to buy them. But, what does America have that China would want? Boeing 787s? F-18s..(what number are we on, anyway?)…what else?
I remember when everyone thought the Japanese yen was too cheap….and the trade imbalance was seriously tilted in the Japanese favor.
Sure enough, enough people squealed loud and long enough and the yen was revaluated. The end result was that everything in America was cheaper for Japanese to buy and the Japanese products became more expensive.
In the end, Americans paid more for Japanese cars, TVs and such…and the Japanese still did NOT buy American goods. They didn’t buy American goods when they were expensive or when they were cheap. And the trade imbalance continued to swell.
Why should it be any different with China?
The answer is to make something China wants. And then we can talk about pricing it fairly.
That’s what I think.
What do you think?
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