It is no secret to anyone who knows of China's power hungry dictator, Jhiang Zemin, that he is not of the breed that came about after the death of Mao, and rose sparse parts of China out of poverty and helped raise the image of China with new skylines to many of its major cities and a new sense of 'global trade' rather then the hardline isolationism brought on by Mao and the Great Leap. No, he is a shoddy photocopy image of Mao and what he stood for: Take everything from the people, give next to nothing back but to those of your friends and your allies. A tactic perfected by those to stay in power despite a non-progressive climate.

A great example of this is China's exchange rate manipulation, which many of you are familiar with. China is manipulating its trade surpluses and gaining them by over-valueing it yuan and taking money from World Bank and others which it says it needs, despite having nearly $220 billion in its own banks. This is all for the sake of keeping the precious yuan in competition with the dollar, which really means they don't want the yuan dipping any lower. But by doing this, the undermine the US dollar while US officials take a pacifist approach to this. The trade deficit with China is estimated at $100 billion or so. But what if the manipulative factors which go into this are taken out? $90 billion, $80 billion, less?

IT has also been speculated that China is lying about its GDP rate. 9.1% as of 2004? Really, considering that Chinese energy consumption does not seem to compute with it's GDP rate over the last 4 years since 2001 when the GDP rate was at 74% for China. Energy consumption usually grows 10% faster during times of economic expansion such as this, but it is not. Instead China countinues to have the world's greatest amount of poverty and unemployment and is able to pull off all this growth by doing something no other country has been able to do: Grow in the inudstrial market without gobbling up countless megawatts of energy. Instead they seem to do the opposite.

At the moment the US has taken its benign approach to dealing with the problem with watching its own GDP hover around 3%, something that will not compute in the factor for world dominance against the EU and Russia.

What needs to be done? Must the US begin to take the same steps as China has and manipulate the exchange rate. Or are the wars in the Middle East: problem solved?

Originally posted by Frosty
A great example of this is China's exchange rate manipulation, which many of you are familiar with. China is manipulating its trade surpluses and gaining them by over-valueing it yuan and taking money from World Bank and others which it says it needs, despite having nearly $220 billion in its own banks. This is all for the sake of keeping the precious yuan in competition with the dollar, which really means they don't want the yuan dipping any lower. But by doing this, the undermine the US dollar while US officials take a pacifist approach to this.

You have this backwards.
The Chinese are undervaluing the yuan and boosting the value of the dollar not the other way around. This is not undermining the dollar but has instead cushioned the fall in the value of the dollar over the last couple of years.