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Senate Passes Currency Manipulation Legislation

The ball is now in House Speaker John Boehner’s (R-OH) court after the senate passed a bill last night that cracks down on China’s illegal practice of undervaluing its currency to gain an upper hand in international trade.

Sixteen Republicans joined forces with most of the Democratic caucus to pass the legislation in a 63-35 vote. Four Democrats and Independent Joe Lieberman (CT) voted against the measure.

The bill will now move on to the house, where it has widespread, bipartisan support. However, Boehner has called the bill “dangerous” and has said that he has no intention of bringing it to the floor.

Senate Democrats are hoping that their action will put pressure on Boehner to bring the bill to the floor for a vote.

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If you think this is going to pass...

then invest in CYB and make some $$$$.

Oh okay I see

Well then you had better bet that this WONT pass because congress never does anything good for the American people.

hmmm

excuse me for my ignorance but whats CYB?

What is CYB?

China has long linked its

China has long linked its yuan to the dollar; what is the likelihood that, in the foreseeable future, and in panic, America decides to link the dollar to the yuan?

Both the Republicans and the Democrats are eager to dodge blame for the dead-cat economy by laying that cat on China's doorstep.

Washington is the real currency manipulator, harming both the United States and the rest of the world by its policy of dollar depreciation and destruction.

The entire world knows that the "American emperor has no clothes" where the dollar or the debt is concerned, thus threats to China on currency valuations or tariffs are only more election-year propaganda for the uninformed voting public and union voters. But the threat to the US is real should China respond.

Are these cretins willing to destroy the US Treasury market and the dollar and threaten the entire world economy by forcing the Chinese central bank to reconsider actions with the 1 trillion dollars in US debt and possibly create a run on sovereign debt around the world? I think this would be a high price for the world to pay for election-year demagoguery and why I prefer Ron Paul, who understands markets and economics.

China's supposed "free-market" economy is a Potemkin Village.

China has

Aww whats wrong .

Are you guys afraid your not gonna get your Ipods at walmart for 9.99 anymore boo hoo I garuntee Ron will side with the Democrats on this one.

On what principle.

Markets are smarter than money manipulators. Congress should let the markets work.

The 99% are up to their necks in debt to the Federal Reserve. For those without personal debt, the Congress has burdened you with $47,000 of debt. Nearly half of that is owed to the Federal Reserve and a big chunk to China.

What is most likely, is that the bill passed by the Senate is legislative collateral to be offered by Congress in return for raising the debt ceiling.

I have not read the bill, but the debt ceiling is ready to knock some sense into us, unless Congress pays with our blood sweat and tears to have it raised.

Who will benefit? The Federal Reserve benefits from all legislation it allows through. Union leaders will get a bone. Politicians get praise for saving us from a scapegoat.

But if China is subsidizing its currency in order to send us cheaper product, this is a good thing. When they run out of subsidies, we will have cheaper product and they will have nothing.

Of course, the bill is a bad thing, that is why Congress supports it.

Free includes debt-free!

When you sleep with dogs your gonna get fleas.

The American manufacteror has long been outsourcing our jobs for years now to the point where now 46 million of us are living in poverty we are now living in such low standards now.This bill will allow manufactuering to start moving jobs back over here. Do I feel sorry for the rich Yankee traders who are sending their lobbyst to bitch and moan to the Tea Party.Nope . There gonna get whats comming to them.And oh yea one more thing not only will Union leaders get a bone but the American workers will get more jobs.Shame on the Tea party for siding with the Chinese communist.

Dream if you want to.

"Do I feel sorry for the rich Yankee traders" I can't imagine Congress doing something good for the 99%.

Free includes debt-free!

Yes I agree

Thats why this bill probalbly wont pass . But Ron realizes whats going on thats why I bet a dollar to donuts he will vote for this bill.

Dr. Paul is for free trade

...So he will be voting against this bill. China is looking for more markets anyway, our consumption has declined because of the enormous amounts of consumer debt we have acquired. If we impose tariffs they will just reduce their imports and focus on other markets around the world, if you work in retail you know that the back stock has shrunk dramatically within the last 12 months, it can get worse. As long as our regulatory system squashes small businesses from starting up and federal subsidies keeps our big businesses over seas we will not see more jobs or growth at home.

I am surprised that Obama is

I am surprised that Obama is against this stupid scheme, as it would at least superficially benefit American corporations and unions at the expense of the American people.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

How can the senate do this?

How can the senate do this? It is literally the pot calling the kettle black. Ridiculous. They want to meddle everywhere and they need to be voted OUT. I do not know whose agenda they are following but it is obvious they are corrupted.

Who benefits?

I must assume, with history as a guide, that their are powerful interests that will benefit from this bill.

I suspect targeted isolationism. Only Preferred corporations will afford the costly bureaucratic tangles to make money in China. The rest of the business community gets Preferred trickle down.

Free includes debt-free!

Trickle-down = trickled-on

We need bottom-up wealth generation through innovation, value generation, community support and determination.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

Trade war here we come...

Doesn't anyone in DC know any history?

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Let it not be said that we did nothing.-Ron Paul
Stand up for what you believe in, even if you stand alone.-Sophia Magdalena Scholl

Arrogant Delusional Idiots

Arrogant Delusional Idiots

That is the only way to describe both the legislators and the author of this story. The author refers to China’s actions over its own currency as “China’s illegal practice.” Illegal? By what authority? What irrational arrogance. And the legislators who think they have absolute power to pass legislation over any other nation on earth to control the currency of other nations for an (incorrectly) perceived selfish benefit to this nation are suffering from absolute delusions of grandeur. These legislators now think they are absolute rulers of the entire planet, world pharaohs able to dictate to every nation the proper way to manipulate currency.

First, only China has authority over its currency – nobody else. U.S. has no more authority over China’s currency than China has to pass laws government US monetary policy. Should China pass laws outlawing US quantitative easement, ZIRP, debt monetization, bailouts, foreign lending, currency swaps, government borrowing, Operation Twist, and on and on. Quite frankly ending such programs would ultimately be very beneficial for the US, but it is still not China’s authority to pass laws over US monetary policy any more than the US has authority to pass laws dictating China’s monetary policy.

Second China is doing nothing the US does not do. China is after all merely following US lead. Almost every action the Fed does is currency manipulation. Currency swaps, foreign currency purchases, foreign debt purchases, ZIRP, toxic asset purchases, lending swaps, debt monetization, bailouts, Operation Twist, QE!, QE-lite, QE2, gold sales, gold lending, and on – every expansion of the Fed balance sheet is direct manipulation of the currency supply.

Lastly be careful what you wish for. If China were to allow its currency to appreciate as these legislators demand, it would benefit China. The cost of living for Chinese residents would drop, and their standard of living would rise. Chinese would become consumers of their own goods and China trade would be less dependent on the US economy. With their higher purchases power, Chinese would now be purchasing more oil, autos, goods, food, materials, commodities on the world market, driving up prices for US residents purchasing in U.S. dollars. Do these legislators really think we would be better off if China doubles its oil consumption and the cost of gasoline in U.S. dollars for Americans jumped to $10 a gallon? And how do they think China would strengthen its currency? It would be by ending selling its foreign reserves – dollars and treasuries to buy up Renminbe strengthening its currency. The dumping of U.S. treasuries drives up the interest rates required to see U.S. treasuries and increases U.S. government debt costs. The dumping of dollars just further adds to dollar devaluation. That is a double whammy for U.S. residents – costs for U.S. consumers not only rise due to competition from increased Chinese consumer demand, but the value of the U.S. dollar gets diminished at the same time by china dumping its reserves.

Let it not be said that we did nothing.-Ron Paul
Stand up for what you believe in, even if you stand alone.-Sophia Magdalena Scholl

Yes but you also are forgetting one more thing.

Manufacturers will finally realize its much more cost effective to produce over here than hire Asian slave labor over there.

Correct- these actions lead to default

Arizona Joe - hit it on the head.

If the Chinese or other leading economies move away from the USD and create a substitute then we head towards currency collapse / hyper inflation.

No one talks about it but we had a taste of that in 1979. Interest rates soared to 21% and Paul Volker had to go to the IMF hat in hand. That was the product of the Vietnam War Era policy of guns & butter coupled with a OPEC price shock. Volker killed inflation and pulled us out of a death-spiral.

But we got out of it because the USD was firmly anchored as the world benchmark.

If the USD is dumped this time around we can only default Latin American style or back our currency with precious metals and burn the excess paper.

This initiative is a false flag. We are being bullsh*tted. We need a turnaround manager in DC.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

1000% Agree!

This is nothing that even a cursory look at what Peter Schiff has to say every day at schiffradio.com wouldn't fix. The whole "It's China's fault" syndrome is telling of a complete lack of economic understanding of how the world works. It's akin to the alcoholic who'll come up with any excuse to absolve him from having to look at himself. Wise up DPers, we'll need learned friends of liberty to spread an accurate message, not just an emotionally charged one.

"I never submitted the whole system of my opinions to the creed of any party of men whatever in religion, in philosophy, in politics, or in anything else where I was capable of thinking for myself." - Thomas Jefferson

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Let it not be said that we did nothing.-Ron Paul
Stand up for what you believe in, even if you stand alone.-Sophia Magdalena Scholl

When you have your finger pointed at someone else -

you have three pointing right back at you.

Freedom is not: doing everything you want to.
Freedom is: not having to do what you don't want to do.
~ Joyce Meyer

Let Boehner know how you feel

Call and tell John Boehner that you don't want to see this passed.
(202) 225-6205

xoxo,
Mrs_GRB

If they're so concerned about currency manipulation

why don't they repeal the Federal Reserve Act of 1913?

I think what it really means

is they want the US to be the only ones who can do it :)

(+)

Right on target

RON2012PAUL...The r3VOLution continues...
"I always win"
http://youtu.be/Xtl2ZuJpG9M
+GOLD and SILVER are money+

I'm sure most of Congress will work together in a bipartisan

fashion to export ever more inflation to China as quickly as possible.

The three biggest things we export as a country:
1. Inflation
2. War
3. Materials (to be recycled)

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RON PAUL 2012