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Politics : Ask Michael Burke
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To: Knighty Tin who wrote (107659)5/18/2007 2:32:25 PM
From: BSGrinder  Read Replies (1) of 132070
 
What's funny is that the US officials think a stronger Yuan will reduce our trade deficit, because Chinese goods will become more expensive. In fact, the opposite will happen - we will increase our trade deficit - because we will be paying more for the same Chinese goods that we have no capacity to produce at those prices in the US. Perhaps some imports will shift to Vietnam or Cambodia, but that won't fix the US trade deficit. /BSG
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