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To: shadowman who wrote (31394)	5/17/2005 3:26:07 PM
From: fatty	Respond to of 306849

I think the chinese imports and currency are two problems that can be easily solved by one solution: create a special immigration status that allow rich chinese to immigrate to US easily with the initial condition that they will have to pay income tax regardless where they earned their money. I think this class of chinese will have positive economic contributions to the US both in the long term and short term. Canada and Australia have tried this idea with mixed results. However, unlike Canada and Australia, I think USA is a much more desirable place for them and I think that they will settle down in the USA for long term instead of treating it like a temporary shelter. Looking forward, I think the USA should also find some ways to lose some of the deadbeats in the system to keep the country ever more competitive. In this age of globalization, we're all citizens of mother earth. Being born on earth shouldn't give you special privileges to a specific locale.

To: shadowman who wrote (31394)	5/17/2005 5:42:11 PM
From: Elroy Jetson	Respond to of 306849

I think Bush and his Treasury secretary have close to zero control over China's currency exchange rate. China's exchange rate is determined by their own internal needs relative to all of their trading partners. At least in the short term, a 20% rise in their currency effectively imposes a 20% export tariff on all of their products to all of their trading partners, increasing unemployment in China. Why would they do this, unless they have their own internal reasons for doing so? What can the US do in response? Impose an import tariff on some or all Chinese goods? For China that is a far better solution than imposing a tariff on all of their exports to all of their customers. Besides, the US would be in violation of the WTO agreement. From China's perspective, I think there is increasing evidence that they are losing money on many exports because the production costs are being subsidized by loans from the state-owned banks which will never be repaid. China has to solve this problem and the sooner the better. Yet their currency exchange rate neither causes nor solves this problem. Switzerland is protecting their economy and certain industries from cannibalization by China through indirect subsidies and import taxes. Through a market decline in their currency value, they will end up with the same decline in living standards the US experiences, but without the same social dislocations and major loss of industries and jobs. The eagerness of US companies to effectively give away their proprietary technologies to China will have devastating consequences on our future. .