Greenspan, Snow warn against China sanctions

[JRob]

By Glenn Somerville

WASHINGTON (Reuters) - Imposing punitive trade sanctions against China may slow the drive to persuade Beijing to adopt a more flexible currency and won't protect U.S. jobs, Federal Reserve Chairman Alan Greenspan and Treasury Secretary John Snow warned on Thursday.

Clearly worried that spiraling U.S. deficits were driving Congress toward trade action, Greenspan and Snow sought to tamp down the angry mood by pointing out the possible consequences for the United States.

Both said China should loosen the peg it maintains for its yuan currency against the dollar, in its own interest and that of the global economy, but said it would be futile to try to force Beijing to do so through trade sanctions

http://news.yahoo.com/news?tmpl=story&cid=584&e=1&u=/nm/20050623/pl_nm/economy_china_dc

[AllyCat]

1. Nothing will stop me from boycotting their products

Not only do I boycott, but I tell merchants why. Many, many shopkeepers are on my side when I explain my reasoning. If your local merchant sells products "made in the USA", buy them, thank the merchant, and email or phone the company to tell them why you bought their product.

It's hard to do since almost everything is made in China (or Hong Kong or Macau). Buy used, or go without if there is no alternative. Saves a lot of money too.

[ckramer]

2. That's silly

The correct way is don't buy anything unless you really needed it.

Don't buy things because the TV ad tells you so.

If everybody just does that, problem solved.

[AllyCat]

3. And if you really need to buy something, choose non-Chinese

made crap. Not silly. Call it what you will, but I cannot let myself buy stuff from a country that treats it's people like crap, has forced the peaceful Tibetans out of their country, and takes American jobs.

[ckramer]

5. I buy things that are cheap and in good quality

Chinese goods seem to fit in that category.

[AllyCat]

8. Rarely good quality from China. Not only that, they take patented

products made here, and then copy them there, using workers in unsafe factories, no environmental standards, and making, on average, 12 cents a day. They often work 18-24 hour days and children are not exempt from their workshops. China says it's against the law, but everyone, including "inspectors" report that it is true. I find it hard to believe products made under these conditions are good quality.

I have a blogspot to highlight equestrian products and their country of manufacture. On top of that, I frequent equestrian forums where I regularly hear about people buying Chinese made horse products that fall apart after a few weeks or months. And many of these items are really expensive, even for horse stuff (which implies expense).

So the US gets no protection from their patents, we lose jobs, and then we sell the stuff at bottom dollar using workers in the US with no health insurance or other benefits. Then our taxes pay for their healthcare, foodstamps, and subsidized housing.

Buying Chinese is not "cheap".

[JRob]

13. Great point

[JRob]

12. ...and therein lays the problem. Whatever's good for you...

[JRob]

4. ...So it's OK to shop Wal-Mart as long as "you need it"?

We are financing the very entities that are destroying our country, the environment, support BushCo etc. Republican and some Democrat politicians are sipping the Corporate Kool-aid.

THE BUCK STAYS HERE! In my wallet.

[ckramer]

7. But where can I buy a radio, a TV, a bicycle, or an air conditioner,

that is 'made in USA'?

And clothes, toys, shoes...anything needed for your daily life...

[AllyCat]

10. Buy used!

You will not support their economy when you buy second-hand.

Many bikes are made here: Trek is made here in Wisconsin.

[CAcyclist]

11. There Are USA -Made options

Harder to find, maybe, but far far better quality. If I can't find good made in US goods, I choose european over Chines. My Klein and Trek bicycles were both made in the US and my road bike comes from Italy. My shoes are made in the US, England, and Italy and they last a great deal longer than Chinese goods.

[JRob]

6. THE BUCK STAYS HERE! In my wallet...

It's not just China, but US corps as well. We buy used cars, appliances, paid off credit cards (and do not use them), are working on paying off our home (which now the gov. can decide to take for any reason) etc.

This crap will continue to escalate until we collectively make a stand.

I get criticized for saying we need to refuse to participate in the economy even though we continue to see an assault on every aspect of our lives.

They're leaches sucking away more and more of what we have, to feed their giant machine and world expansion. It will not stop unless we make a stand and the only weapon we have is our money.

It is time to send a message to Corporate American and their lap dogs in the WH and Congress.

[salin]

9. in other words.. the payback for such a move

would kill our economy (given our indebtedness per financing boygeorge's deficits - given our trade deficits and given the country's "largest employer" (scary, eh) Walmart's dependence upon Chinese cheap labor.)

[Judi Lynn]

14. Greenspan warns against US tarrifs on China

June 23, 2005 12:42 PM ET
Greenspan warns against US tarrifs on China

US trade sanctions against China would threaten global growth in living standards, especially in the US, Alan Greenspan, chairman of the Federal Reserve, said on Thursday, in prepared testimony to the Senate Committee on finance.

Responding to Congressional pressure for tariffs on Chinese goods, Mr Greenspan warned any such move was unlikely to protect US jobs and was likely to prompt higher imports from other low-cost countries rather than helping reduce the US trade deficit.

"The broad tariff on Chinese goods that has recently been proposed, should it be implemented, would significantly lower US imports from China but would comparably raise US imports from other low-cost sources of supply," Mr Greenspan said. "At only slightly higher prices than prevail at present, US imports of textiles, light manufactures, assembled computers, toys, and similar products would in part shift from China as the final assembler to other emerging-market economies in Asia and, perhaps, in Latin America as well. Few, if any, American jobs would be protected."
(snip)

"A return to protectionism would threaten the continuation of much of the extraordinary growth in living standards worldwide, but especially in the United States, that is due importantly to the post-World War II opening of global markets." He added: "Such an initiative would send the adverse message to our trading partners that the United States, while accepting the benefits of broadened world trade, is not willing to absorb the structural adjustments that are often necessary."
(snip/...)

http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=FT&Date=20050623&ID=4913723

[Maple]

15. Well he's right

on that one.

[JRob]

16. so please characterize the current diminishment of "living standards"

being experienced in this country...

"A return to protectionism would threaten the continuation of much of the extraordinary growth in living standards worldwide, but especially in the United States"

I must be missing something.