How much will taxpayers shoulder?

[Taem]

Fact: China's Yuan is undervalued relative to the US Dollar.

Fact: Undervaluation helps the Chinese export producer and the US import consumer, and hurts the US export producer and the Chinese import consumer.

Fact: China's currency controls make it impossible for money to flow freely in and out of the country, except subject to government oversight.

Fact: China has purchased a historically unparalleled number of US Dollars.

The whys and wherefores are up for debate. Perhaps China adopted this policy for entirely benign reasons. Perhaps it has good reasons to hold on to it. However, the effects are not, in any meaningful sense, up for debate. Chinese exports to the US are higher than they would be if their Yuan could float freely. This has a protectionist effect. That is not free trade in currency, and free trade is what the WTO exists to protect. China is a member of the WTO, and thus, is doing this contrary to its obligations. Pass judgement as you like on whether this policy is good, bad or upside down, pursued for good or for ill or out of total ignorance, but these are the facts.

If what you are trying to get at is the motive of the Chinese government, then you have a long road ahead of you that will not be paved with anything I can tell you. All we have is speculation, unless you're a ranking member of the central committee.

-Jester

You and Zenda are talking in circles. Can't you see what he's saying Jester? There is no "proof" other than China purchasing a large number of US dollars that China is [key-word-here] "intentionally" manipulating the Yuan. ''Prove it'', is what Zenda is saying; I also fail to see any direct proof. China has been doing these same tactics of controlling their currency that they have always been doing from what I've read, so their introduction into the WTO means nothing. It's not like China suddenly changed the way they did business just to screw over America. While I see the point you and Kandrathe have made, and I do agree that their dealings hurt the global economy to benefit their own, it is hardly illegal and well within their right, which I also believe is a point made by Zenda. America needs to find a way to deal with this by, perhaps increasing tariffs on all goods shipped from China and exported to China from America. Would this increase the cost of things "made in China?" Hell yes, then maybe Americans would start buying American and helping out their own economy for once, so maybe it wouldn't be such a bad thing. It's a sad reality that when I purchase a toy or household item and it has a tag that say's 'Made In America,' I already know it will break within the year. Let's face it, American goods just aren't what they used to be, and the other countries have taken advantage of that fact and exploited it with cheap labor. Truth in fact here Jester is America let this happen, just like they let the housing market problem build-up until - crash! Want to talk about Global Warming? America's stance has always been legislation through crisis since WWII, and I don't see this 'problem' as being any different. No, what America needs is a real change in leadership, someone who will shake the bowels of hell.