Obama Admin Says China’s Not Manipulating Currency
- Posted on May 27, 2011 at 2:00pm by
Billy Hallowell
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WASHINGTON (AP) — The Obama administration on Friday declined to cite China for manipulating its currency to gain trade advantages against the United States but said the pace of the currency’s rise against the dollar needs to be accelerated.
The Treasury Department noted that China has been allowing its currency to rise against the dollar since last June, but it said Beijing needs to make more rapid progress. America’s trade deficit with China hit a record high last year.
The department’s finding came in a report it must submit to Congress every six months determining whether other countries are manipulating their currencies. American manufacturers have been pushing for China to be cited. That could result in penalty tariffs on Chinese imports.
U.S. manufacturers believe China’s currency is undervalued against the dollar by as much as 40 percent. This makes Chinese goods cheaper in the U.S. market and American products more expensive in China.
China’s trade deficit with the United States hit $273 billion last year, the largest deficit the United States has ever had with any country. Critics contend that China is manipulating its currency to keep it undervalued against the dollar as a way of getting unfair trade advantages, an attack that has gained more support at a time of high unemployment in the United States.
In the report, the Treasury Department noted that China’s currency has risen by 5.1 percent in value against the dollar since last June, when Beijing announced that it would resume allowing its currency to appreciate. The report said the appreciation was a faster 9 percent on an annual basis when taking into account different inflation rates between the two countries.
But private economists said that on a trade basis, China‘s currency really hasn’t moved much at all given that while it is rising against the dollar, the dollar has been falling against many other currencies. Because of this, they contend that China will likely see its global trade surplus rise significantly this year.
Analysts said that Treasury’s refusal to cite China was not unexpected, but the decision will likely add fuel to complaints that Washington needs to take a tougher approach on trade issues with China.
“The continued high bilateral trade deficit that the U.S. runs with China and a weak U.S. labor market will keep China’s currency policy on the radar of U.S. politicians for some time to come,” said Eswar Prasad, a China expert at Cornell University.
Nicholas Lardy, an economist at the Peterson Institute for International Economics, a Washington think tank, said that while China’s trade surplus with the United States and the rest of the world shrank during the global recession, it is likely to rise significantly this year, adding to the pressure on policymakers to do something.
The Chinese embassy in Washington did not have an immediate reaction to the Treasury Department announcement, which was issued late Friday.
The Obama administration and the Bush administration have never cited Beijing in the currency report, believing that they can be more successful with arguments that such a move would be in China’s advantage.
The new report made the point that Treasury Secretary Timothy Geithner has made, that a stronger Chinese currency would allow Beijing to better control rising inflation pressures in China.
The new report was scheduled to be released on April 15, but Geithner announced it would be delayed to give the administration an opportunity to meet with the Chinese for the annual discussions of the US-China Strategic and Economic Dialogue, which took place this year on May 9-10 in Washington.
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Comments (40)
Zone Read
Posted on May 29, 2011 at 12:29amSIMPLETONS!!! I would have at least thought that these egg-head, elite, academics in the Obama Administration would have a rudimentary understanding of economics. Instead, they don’t want to make the Chinese angry, so “we’ll just agree with them”. Amazing.
Report Post »RepubliCorp
Posted on May 28, 2011 at 10:58pmHe is a Chinese pole smoker……….. thats all
Report Post »Randyrocker
Posted on May 28, 2011 at 8:15pmBarack Hussein Obama thinks that he alone owns the world, so he also thinks that all of the world’s currencies belong to him automatically. Obama‘s bigger than ’King Kong’ but a whole lot dumber.
Report Post »Randyrocker
Posted on May 28, 2011 at 8:12pmOf course not. It’s the IMF, JP Morgan and Goldman Sachs along with the FED who are manipulating the currencies of the world. All of them are in bed with Barack Hussein Obama the Evil One.
Report Post »silentme63
Posted on May 28, 2011 at 5:31pmYes I believe you Mr. Obama hows that fake birth certificate doing, or the unlikely demise of Bin Laden
Report Post »I see you poll numbers have jump handsomely. you dear sir are a liar no truth in you can be found.
piper60
Posted on May 28, 2011 at 5:23pmOf course, the Chinese are after everything we have! Everytime I see the rosetta stone ad where the woman says something like “Now I speak Manderin”, I say, “Yeah, now you’re all set for the invasion”.
Report Post »voted against carter
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Report Post »AmericanLass
Posted on May 28, 2011 at 4:41pmThen we know THEY ARE. Yes means No, No means Yes. Wrong is Right, Right is Wrong. Negative is Positive. Against is For, For is Against. Bet they didn’t think we were dumb enough or is it smart enough for us the catch on.
Report Post »curtmavi38
Posted on May 28, 2011 at 3:14pmObama’s motto: What is the use in telling the truth when a lie sounds much bettermeh
Report Post »psadie
Posted on May 28, 2011 at 2:01pmWho are these A#$ES in the WH? They clearly do not know what they are talking about; yet, they continue to speak as if no one is listening to their words. WE THE PEOPLE are listening and we get it!!! You jerks have got to go in 2012; you are ruining this country by the minute with your INCOMPETENCE. By not standing up to the Chinese, you are showing great weakness. The Donald is correct when he says “they are laughing at us.” What a friggin joke you people are!
Report Post »MominMD2003
Posted on May 28, 2011 at 12:28pmJust proves how flippin’ out of touch the Obama admin is!! Complete MORONS!!
Report Post »heyjim55
Posted on May 28, 2011 at 12:27pmSounds to me that Obama wants to borrow more money from the ChiCom’s, one minute they complain about China the next their kissing their back side. I would think that Obama has no problem kissing China’s rear end since they have his preferred form of Government. China is manipulating their currency so is the Fed in fact most of the industrialized world is doing it mainly because the Fed is doing it. China is privately threatening the US that they will no longer buy our debt and have been dumping their dollar holdings every month, several billion dollars at a time.
Report Post »welovetheUSA
Posted on May 28, 2011 at 12:27pmRight……and the IMF…and George Soros are innocent too.
Report Post »RLTW
Posted on May 28, 2011 at 11:16amHow about China forgive our dept based on adjusted 1940’s dollars for ridding them of the Japanese invasion, will call it even.
Report Post »ByrdsofMisssouri
Posted on May 28, 2011 at 10:42amWe can have a big hand in what China does here, or any country for that matter. It will be hard and take some effort on our part. Check labels on everything from toys to food to house-hold items, if it is made any where other than the USA, don’t buy it. The hard part is finding products made here, since we have given all the jobs to foreigners. I’m reminded of the couple that made a commitment to rid their house of anything not made here. They had one lamp left.
Report Post »rdk
Posted on May 28, 2011 at 11:22amThey had better recheck that lamp.
Report Post »ByrdsofMisssouri
Posted on May 28, 2011 at 11:29amGood point!
Report Post »psadie
Posted on May 28, 2011 at 2:09pmYou are right on. Americans can bring China to her knees by not buying “Made in China.” A VAST MAJORITY of the Chinese exports come to the USA. I no longer buy Chinese goods. It does take a little work but I look for other Asian countries to purchase. If we all do this we can make a HUGE difference and they will not be able to manipulate their currency and drag ours down. Sorry, George Soros, I’m sure you were counting on that to clean up after our dollar collapses.
Report Post »Gonzo
Posted on May 28, 2011 at 9:47amTiptoe through the window
Report Post »By the window that is where I’ll be
Come tiptoe through the tulips with me
Whostolemypig
Posted on May 28, 2011 at 9:20amInteresting how Obama consistently says one thing they says just the opposite at another time, then flip flops between the 2. That is his version of being a moderate or centrist as reported by the media. I call it being sneaky like a fox.
Report Post »progressiveslayer
Posted on May 28, 2011 at 9:12amChina is buying gold exploring for oil and manipulating their currency all to gain an advantage over us,we’re in debt to china way too deep.Barry is deconstructing America by design,his green energy policy will fail,look at Spain 21% unemployment and the people are rioting.Barry wants amnesty for the illegals that are here and I believe he wants open borders.Barry is the most anti U.S business president since FDR.I know I‘m off topic but this guy is the worst president we’ve ever had and needs to lose the next election.
Report Post »Michael
Posted on May 28, 2011 at 9:03amWhat!? How horrible! Of course everything Obama says is the truth, isn’t it? He’s as powerful as the Pope and as omnipotent too, as we have been told. Of course I’m not saying that Obama is the head of a religion. It’s just that his followers follow him with a religious ecstasy or will until his lies personally effect them..
Report Post »JamesR
Posted on May 28, 2011 at 8:42amAnything the Obama administration says should probably be questioned with boldness. They have always been in over their heads and this makes it worse when they actually open their mouths to speak.
Report Post »hempstead1944
Posted on May 28, 2011 at 8:16amCall Trump….he will tell you the truth.
Report Post »dizzyinthedark
Posted on May 28, 2011 at 7:48amYeah that‘s right and Gabby Gifford’s opened her eyes FOR THE FIRST TIME when his royalness came into the room too!! NOT!! There‘s more he’s lied to us about, we can list them, I’m drawing a blank now. Oh wait, most recently, Bin Laden, Libya, now your turn……
Report Post »Lost In Space
Posted on May 28, 2011 at 7:43amwhat a rube. but hey wait we cant beat up china,thats what obama and his comrades are aspiring for,destruction of liberty for the socialist utopia of state capitialism. Meanwhile Soros is in the background rubbing his hands starting to slobber.besides
Report Post »china has to keep its currency strong for when it replaces the dollar as the curreny of choice, meanwhile Obama and Geitner strengthen our dollar through quantitative easing,i would laugh if it wasnt so sad.
1TrueOne55
Posted on May 28, 2011 at 6:09pmYeah Bernanke is killing the American Economy Slowly, because if he did it any faster it would wake up the financial market to what Georgy Schwarz/Soros is trying to do. Get America out of the way to his take over of the world.
Report Post »GulfPeg
Posted on May 28, 2011 at 5:49amBoth the US and China are manipulating their currency. The Obama adm. printed money. If that isn’t manipulating currency, then we can’t blame China for manipulating theirs.
Report Post »Love glenn protect glenn
Posted on May 28, 2011 at 6:41amYes, if every country follow what american fed and treasury want them to do, they will fall into the same financial dark hole Goldman Sachs has dug for us.
Report Post »Living In NYC
Posted on May 28, 2011 at 5:31amChildish fools in the Whitehouse….get real….these guy will manipulate anything to become “King of the World”
History is not a 24 hour news cycle….the new Irish Mob headed by O’Bama thinks it is!
WAKE UP – Kiddos…the Beijing Boys are after everything we have!
Report Post »Polwatcher
Posted on May 28, 2011 at 6:24amAgreed, and our childist fools in the WH are willing and ready to give them anything they want.
Report Post »poverty.sucks
Posted on May 28, 2011 at 8:49amObama speaks in opposites, Everything he says is untrue.
Report Post »BJColter Country Music Iconoclast
Posted on May 28, 2011 at 9:42amWhen you subsidize a currency, you manipulate it. China’s gonna be there at the last battle, folks, they’re already setting up a base on the Ivory Coast, not to far away from Israel. Here’s a song all about it, Obama.
http://www.youtube.com/watch?v=SqdufoUASMc
Report Post »T-N-B
Posted on May 28, 2011 at 11:22amThe Obama regime mearly defending their employer
Report Post »retriever
Posted on May 28, 2011 at 12:40pmThese people are not childish fools, they know exactly what they are doing. Don’t give them any excuses for running America into the ground.
Report Post »NOTAMUSHROOM
Posted on May 28, 2011 at 12:49pmIf Odumbo and the Dingbatocrats would admit to China manipulating their currency, then they’d have to admit that the US is manipulating our own currency. We can’t have the pot calling the kettle black, now can we? They’d also be admitting that Donald Trump was right. The really sad part of this is that they STILL think we’re that stupid!
Report Post »jackrorabbit
Posted on May 28, 2011 at 1:13pmYes, and the Fed isn’t printing money, and the Treasury isn’t selling bonds to the FED for more dollars to spend.
Report Post »To quote Kramer “They no NOTHING!”
oldoldtimer
Posted on May 28, 2011 at 5:55pmThat info is only for the true believers. The idiots, fools and Obamas shet does not stink crowd.
Report Post »@ Coyote2
Posted on May 29, 2011 at 12:06pmThe so called “Federal Reserve” is all parasitic jew banks. There is nothing federal about it. Obumers advisers are all jews or pro jew. The veep is pro jew. The Supreme Court is heavy on the jew side as are the federal judges. AIPAC controls the house and senate. That don’t leave much for the American people.
Report Post »