| China Won't Budge on Obama Yuan Demand |
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| by Tom McGregor | Mon, Feb 8, 2010, 09:05 PM |
 Beijing announced through the state-run media that the government will "not yield to Obama's hardline on yuan," the nation's currency. President Barack Obama vowed to get "much tougher" with the Chinese Communist Party "on exchange rates and trade." Economists working for the government "said China should not give in to increased U.S. pressure that stems from its domestic problems."
Xinhua, the state-run media agency, reports that, "Obama's talk of putting 'constant pressure' on China to strengthen the yuan so to ensure the price of U.S. goods was not artifically inflated has drawn heated comments from economists in Beijing. 'His words are only aimed to appeal to domestic-interest groups,' said Tan Yaling, an expert at the China Institute for Financial Deriviatives at Peking University." China is rising with its international clout and with the poor economy in the United States; certainly, Obama will attempt to make China alter its currency policy as this is an easy method to harm China's export industry, she announced. She also explained that it appears to be a relevant tactic, since Mr. Obama was losing ground in opinion polls and dealing with stiff public discontent leading up to the mid-term elections later this year. "Although, the U.S. economy recovered to 5.7 percent growth in the fourth quarter last year," according to Xinhua, "a record high in six years, jobless rate surged to more than 10 percent. Fiscal deficit is set to hit 1.56 trillion U.S. dollars in 2010, or 10.6 percent of its GDP, a new record since the Second World War." On Jan. 28 in the State of the Union Address, Obama emphasized that he would focus upon jobs in 2010 and promised to double exports in fives years that could create 2 million jobs in the nation. To read the entire article from Xinhua, link here: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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written by furrpiece , February 10, 2010 President Obama is lost in another world to be making demands like these of the Chinese. First, our imbalance of trade with China stretches as far as the eye can see. Second, China holds so much of our debt that we'll probably never be able to pay it back. So, Obama is in a terrible position to be making financial demands on China. That he does not realize this is the result of his never having held a real job, having no experience in business or economics, and having advisers who are Chicago hacks instead of legitimate business people and global economists. Write comment
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