posted on Apr, 19 2006 @ 11:36 AM
Can Bush get Chinese President to adjust currency, no and here is why.
The Chinese currency has been undervalued for years and during that time we have gotten cheap products and they have made billions of products for us.
In the process China's economy has dramatically improved as has their international role. Also during this time, the U.S. has amassed a great debt
If Bush could get the Chinese to value their currency properly, hopefully as much as 25% it would go a long way in easing debt between the two
countries and would also help to ease international tensions. While it would drastically hurt Chinese exports it would give all Chinese citizens a
greater amount of money to spend outside their country.
1. If the Chinese raise the value on their Currency we will see another great diaspora of people. Just think today my money is worth 25 percent more
in ____ than yesterday. Does the Chinese Government want that, no, would that be good for Chinese interests, maybe for China, no.
2. China wants to become a Superpower, the quickest way to become a superpower would be to continue on the same pace with the same valued currency for
20 more years. Maybe easing 5 % every ten years or so. This means there wil be plenty of jobs and the Chinese people will have a reason to stay.
Also they can build products(civilian or military) for much less than the competition so it makes stockpiling weapons much easier.
3. For China's political interests, staying as a Communist Country with free Cities, is job number 1. If China would give in to the currency
difference they would pretty much be stepping up to the world stage. Doing so in turn I believe just by the forces of gravity would force them as a
nation to become less Communist and more Capitalist aka democratic.