For popularity reasons? Surely not…
The basic arithmetic of the US-China economic relationship remains a mutually beneficial one. The US has a vast current account deficit, which China helps to fill by buying US Treasury bonds. That has the dual benefit of keeping the US economy afloat on a sea of relatively low long-term interest rates, while protecting the value of the dollar, thereby ensuring China’s exports remain competitive (though controversial) in American markets.
China has an additional interest in propping up the dollar — with upwards of $250 billion in US official debt on its books, the Chinese central bank is not anxious to spark a dollar collapse.
So the move is, on both sides of the Pacific, another gentle, but welcome shift to a more normal economic relationship between the US and China. The US wants the yuan to fall a bit against the dollar, but nothing too dramatic.
But :
“They do need to clean up their act on intellectual property, they do need to understand that trade is a two-way street,” [John] Snow said. “We’re not satisfied one bit on the currency issue, but it’s awfully important we resist these protectionist pressures.”
Hm. If the cynicism and blatant vote-grabbing is so obvious to me, why isn’t it to the general American population?
In
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…Xenophobia.
So, basically the US and Chinese politicians are going to continue playing the victim with their respective populations and let the bureaucrats get the actual work done.
“If the cynicism and blatant vote-grabbing is so obvious to me, why isn’t it to the general American population?”
People here in the US are dumber than sheep. The most obvious example is that they voted in Shurbya a second time.
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