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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (31643)	6/7/2005 11:51:26 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

Check this logic out. We need to back up President Bush even though his logic is wrong and China is a scapegoat.... forexstreet.com Congress may need to act on China-yuan: Rep. Thomas Tuesday, June 7, 2005 2:45:45 PM WASHINGTON (AFX) - China has become an "all-purpose scapegoat" in the debate over U.S. trade policy, but lawmakers may need to take action to support President Bush's push for a more flexible exchange rate between the yuan and the dollar, a key U.S. congressman said Tuesday "People look at [China] as a fundamental problem," House Ways and Means Committee Chairman Bill Thomas, R-Calif., told a U.S. Chamber of Commerce forum. And that means lawmakers "have to deal with it" in order to move forward on other trade issues, he said Thomas is attempting to shepherd the Central American Free Trade Agreement through the House of Representatives, and hopes to begin legislative efforts to ratify the treaty later this month Thomas said it is important for Congress to demonstrate "from a legislative position" that it backs the Bush administration's exhortations to China to loosen the peg between the yuan and the dollar But he also dismissed arguments that China has unfairly manipulated its currency "What most people don't realize is [that as a result of the peg] the U.S. Federal Reserve Bank is setting" China's monetary policy, Thomas said. Those with concerns about currency manipulation might look more legitimately to Japan rather than China, he said "There are things China can do," Thomas said, but added that delinking the yuan from the dollar probably wouldn't bring a "significant change" in the U.S.-China trade balance