There's too much talk about China's currency manipulation. What should really have American's up in arms is the theft of our Intellectual Property!
I think it is fair to say that every country tries to manage it's currency's relative value. China appears to have found way to do it better than others. Can't say I blame them. By pegging their renminbi (a.k.a. yuan) to the USA dollar for years they helped their exports by holding down the cost of their goods & services. As the USA devalues its currency the Chinese trail right along. Yet, charges of all out "manipulation" have been dispelled as recently as this month in a report released by the U.S Treasury Department which said, ”Based on the resumption of exchange rate flexibility last June and the acceleration of the pace of real bilateral appreciation over the past few months,” China’s behavior did not qualify under the official definition of manipulation, according to the Treasury's semiannual report to the Congress on International Economic and Exchange Rate Policies.
China's questionable currency practices hurt their own standard of living while making their goods & services more affordable for Americans. Walmart is just one, but one huge example of how low cost products save American households money every day! I know the argument against China's currency practices is that they are steeling manufacturing jobs from the USA, but who really wants a job paying $150.00 a month. To stay competitive an American worker would have to take a cut in pay they just can't afford to take. I say let them have that job! America is better off "trading" it for the savings we've enjoyed in the cost of products! And, that worker who lost that job has to find a new way in a new economy. (That's a whole other subject that I can't squeeze into this post!)
Don't fool ourselves America -- we've realized major benefits by letting China become the world's low priced manufacturer! China, and other countries offering low cost manufacturing, have helped hold down world inflation while letting Americans, Europeans, and others enjoy a higher standard of living. But it's not just US households that benefit! USA businesses benefit too. The savings that USA business enjoy from low cost production in China mean greater profits. Profits that those US businesses can invest in higher paying USA jobs, R&D, marketing, customer service, acquisitions, capital investment, or just pass through to their shareholders through dividends and higher stock values.
China has begun to see how keeping their currency low has both helped them AND hurt them. And they are realizing that they have relied too much on foreign consumption. They have been letting their currency climb and we can expect to by many people's predictions there will be a massive increase in consumption from the Chinese people who have one of the largest and fastest growing middle classes on the planet! USA exports to China are growing rapidly and have much more to go!! It's widely reported that China represents one of the biggest growth opportunities to USA businesses. Frankly, this is also the big threat to the USA cost of living as their consumption and rising currency pack a one-two inflation punch!
But I've called this article "Ripping Off America" and thus far it should be apparent that I do NOT believe that they're currency practices are how they're doing it. It is their Intellectual theft that should have our attention and anger every American, including Union Card holders and the unemployed!
America is getting ripped off! The Chinese government virtually ignores, and may even participate in the theft of our copyrights, R&D, ideas, processes, formulas, and anything they can get away with. USA scientists, engineers, inventors, writers, artists and designers create great value that is copied, reverse engineered and outright stolen by China. In doing so they not only rob America of its investment, they also steal the future spoils that would have come from that investment. China deprives the rightful owners of their rewards! I believe that theft of intellectual property by China has cost, and continues to cost, the USA more wealth and jobs than their so called currency manipulation and manufacturing competitiveness!
Fortunately, many of the greatest assets that America has are hard to steal! Inspired American entrepreneurs, marketers, and businesses have created brand names & products like KFC, Pepsi/Coke, Ford, Kellogg, Tide, Levi, Walmart, Harley & Davidson, Ben & Jerry's, Bowing, FaceBook, YouTube, Windows, GE, IBM, HP, Cisco, Bayer, Glad, McDonalds, Dunkin Donuts, Star Wars, Bloomberg, GoldMan Sachs, JP Morgan, Apple, Colt, Nike, Black & Decker, Orek, and hundreds of others that are successful in part because they are "As American as Apple Pie." The Chinese people may be able to produce an individual who is willing or must work for $1.50 an hour, but they can't produce American culture! And it's the American culture that continues to innovate and create "the next big thing."
In conclusion, America would benefit much more as a Nation if we put greater emphasis on protecting our intellectual property than worrying about China's currency practices!!
