I am a regular "Joe" may be not a plumber but a regular average next door guy who is concerned with USA economy. Currently underemployed and with a $ 250 000 in student loans and with a bankruptcy filed not long time ago my passion for the state of the economy arouse ... My purpose is to gather information from different journals and or blogs and help those fellows americans interested in the economy have a broader perception of what really is happening.
Kevin Rafferty clearly mentions that the problem is not the "undervalue" yuan but that America is not saving ...points out that this topic should be handle with care or it might elicit a trade war...I should like to add that American companies are taxed 35% for operating in the USA while only 2% if they are offshore...I will like to add that China has started a pilot program where is evaluating the possibility of turning its currency "international" which means that the value of the yuan will be determined by corporations that buy and sell the renmibi (which means that companies that need a low yuan will fight to keep it that way)...we have to consider that there are many other countries like china ie India... so a revaluation of the yuan might only switch the situation to a different country...besides countries like australia will be affected due to businees ties ...this is more complicated than what Washington thinks
Kevin Rafferty clearly mentions that the problem is not the "undervalue" yuan but that America is not saving ...points out that this topic should be handle with care or it might elicit a trade war...I should like to add that American companies are taxed 35% for operating in the USA while only 2% if they are offshore...I will like to add that China has started a pilot program where is evaluating the possibility of turning its currency "international" which means that the value of the yuan will be determined by corporations that buy and sell the renmibi (which means that companies that need a low yuan will fight to keep it that way)...we have to consider that there are many other countries like china ie India... so a revaluation of the yuan might only switch the situation to a different country...besides countries like australia will be affected due to businees ties ...this is more complicated than what Washington thinks
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