China Cheap Exports. US Versus China In A Rap Battle

The US is accusing China to devaluate its money, or at least to not let it float, helping China products reach our shores at a very low price. China is accusing the US Federal Reserve’s plan to purchase $600 billion in bonds creating a US dollar devaluation and later igniting inflation. Although last week in Seoul countries members of the G20 agreed to “refrain from competitive devaluation of currencies”,  no practical decisions were made and a so-called “currency war” is going on. China Cheap labor plus devaluated currency is unfair to the US. But don’t except big tariffs imposed on imported China products because China is the US main lender. To help you understand the mess in which we are, a video clip parody produced by an Asian company. In it, Barack Obama et Hu Jintao are accusing each other to be responsible for this currency war where each country is using currency devaluation to help its exports.  Funny and better than any American news network?

4 Responses to “China Cheap Exports. US Versus China In A Rap Battle”

  1. 1 Jason Nov 16th, 2010 at 10:33 am

    Ha, ha.

  2. 2 Grayhawk Nov 16th, 2010 at 11:50 am

    One might have to look pretty deep below the surface on this one. Many points, one point that initiated it the 1944 agreement made in Bretton Woods, New Hampshire at end of WW11, establishing a fixed exchange rate of gold for major currencies. International Monetary Fund also came into being at that time for good or bad.

    Whats next, Euro, Yen, Yuan or dollar ? As much as these type articles don’t seem to be related to MC Industry they have it by the balls.

  3. 3 bajerry Nov 16th, 2010 at 4:06 pm

    I’m sorry ,but I am not sure who took us of the gold standard? Or who let the gold prices float on the world market, it was $35.00 an ounce for a long time.

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