The House of Representatives approved legislation Wednesday designed to combat the manipulation of currency by China that results in unfavorable trade conditions for the United States.
The legislation, which authorizes the Commerce Department to impose duties on imports from countries with undervalued currencies, passed by a vote of 348 to 79. (Wallmart will be pissed, shrug)
The bill got support from both sides of the aisle, a rarity in recent sessions, with Democrats framing the legislation as a jobs issue. (too little, too late)
"We can talk, or we can act. International trade is a high stakes, cut-throat business, and every time we simply talk, the other side acts, and every time they act, an American loses a job," said Rep. Xavier Becerra, D-California. (Blame the Trilateral Commission drafting of NAFTA and GATT for your loss of jobs to free trade agreements, along with the congress that enacted them)
China said this year it would allow its currency, the renminbi, to trade in a wider range against the dollar. But the currency, also known as the yuan, has scarcely appreciated since then, inflaming critics who charge the undervalued renminbi helps steal U.S. manufacturing jobs.
Estimations on the undervaluation of the renminbi vary depending on the economic model used, but one estimate by the Peterson Institute of International Economics puts the number at about 24% against the dollar.
(Congress wants to export its depression to another country. - kdtroxel)