Chinese Central Banker Declares That 'Gold Is The Only Safe Haven Left' China is making an even bigger move toward gold in reaction to money printing around the world (via @JamesGRickards). People's Bank of China official Zhang Jianhua declared yesterday: "No asset is safe now. The only choice to hedge risks is to hold hard currency - gold. " Zhang, the bank's research director, recommended buying the dips: "The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation.
" China's $3.2 trillion in foreign reserves are currently invested one-third in U.S. treasuries 20 percent in euro-denominated assets and only 1.8 percent in gold, according to China Daily. China has one of the world's biggest gold reserves at 1,054 tons. China tops U.S, Japan to become top patent filer. China eclipses US as top IPO venue. » China Keeps Slapping America In The Face And America Just Keeps Taking It Alex Jones. The American Dream Friday, December 16, 2011 If you were playing a game against a dishonest opponent and you allowed that opponent to lie, cheat and steal as much as they wanted to, who do you think would win?
Today, China is absolutely crushing the United States on the global economic stage, but they are hardly playing fair. They shower their own firms with huge government subsidies, they brazenly steal technology, they publicly violate intellectual property rights, they manipulate currency rates so that foreign firms cannot compete with Chinese prices and they slap ridiculously high tariffs on many classes of foreign goods. In short, they basically do everything that they can get away with to give themselves a trade advantage. This predatory behavior has caused an enormous transfer of wealth from the United States to China. It isn’t as if it is just some sort of an “accident” that we now owe China about a trillion dollars. How in the world is that “free trade”? Does that disturb you? China-U.S. trade wars: What's at stake - Oct. 13. NEW YORK (CNNMoney) -- China and the United States are the world's two largest economies and arguably each other's most important trading partners.
And now, it seems the two countries find themselves on the brink of a trade war. The U.S. Senate, in a rare show of bipartisan agreement, passed a bill Tuesday that would slap steep taxes known as tariffs on imports from nations with undervalued currencies. It is a provision aimed squarely at China's yuan, and it prompted harsh attacks from Chinese officials. "Should the proposed legislation be made into law, the result would be a trade war and that would be a lose-lose situation for both sides," said Vice Foreign Minister Cui Tiankai.
But despite overwhelming support in the Senate, the bill might never become law as House Speaker John Boehner has signaled his opposition to it. "I think it's pretty dangerous to be moving legislation through the United States Congress forcing someone to deal with the value of their currency," Boehner said. China warns of trade war over U.S. currency vote in dispute - Oct. 11. U.S. Assistant Secretary of State Kurt Campbell (left) meets China's Vice Foreign Minister Cui Tiankai for talks in Beijing on October 11, 2011. BEIJING (CNN) -- A bill that will penalize China for allegedly manipulating its currency to gain a trade advantage is headed for a vote in the U.S. Senate Tuesday, adding pressure on China to appreciate the yuan. China opposes the bill and warns of a trade war if the bill is passed.
"Should the proposed legislation be made into law, the result would be a trade war and that would be a lose-lose situation for both sides," said Vice Foreign Minister Cui Tiankai. "It would be detrimental to the development of economic ties and might have an adverse impact on bilateral relations. " Vice Minister Cui spoke in a press briefing one day before a high-level meeting in Beijing with his American counterpart, U.S.
Even if the bill passes in the Senate, it still needs to go through deliberation and vote by the U.S. Senate targets China currency controls. Chinese officials infuriated over Senate's currency bill - Oct. 11. The U.S. Senate voted to slap duties on Chinese imports in response to China's undervalued currency. WASHINGTON (CNNMoney) -- In a rare showing of bipartisanship, the Senate passed a bill on Tuesday targeting China's undervalued currency -- and angering Chinese officials who have warned of a "trade war. " "China resolutely opposes the currency exchange bill passed by the U.S. Senate," said Chinese foreign ministry spokesman Liu Weimin. "This bill seriously violates World Trade Organization rules, harms bilateral economic and trade cooperation, and does not solve the economic and employment problems in the United States.
" China's Ministry of Foreign Affairs spokesperson Ma Zhaoxu slammed the bill as "doing good to nobody, and it will bring nothing but harm! " "The passing of the act, under the pretext of so-called 'currency imbalance,' is a protectionist measure in nature, which severely violates the WTO rules," said Zhaoxu. China isn't the only currency 'manipulator' The bill would: Sen. Currency manipulation? U.S. must look in mirror -- The Buzz - Oct. 6. Some U.S. politicians are complaining that China has kept its currency artificially low. But the yuan is actually up against the dollar and euro in 2011.
Click chart for more on currencies. NEW YORK (CNNMoney) -- A newsflash to the legislators in Washington who suddenly want to act tough against China for currency manipulation: Have you looked in the mirror lately? How can anyone with a straight face declare that China needs to be punished for keeping the yuan artificially low when the United States is also aggressively trying to devalue the dollar with its monetary and fiscal policies?
The righteous indignation and holier-than-thou attitude is comical at best. Simply put, buying up U.S. The do-nothing Congress hasn't made matters any better. The short-term economic outlook is dismal. You may not agree with President Obama's latest jobs plan. Now don't get me wrong. GE: Partnering with China is better than being left out Should the yuan be even higher? Can China save Europe? U.S. says China’s not a currency manipulator. By Steve Goldstein, MarketWatch WASHINGTON (MarketWatch) — The Treasury Department on Tuesday said China was not a currency manipulator, a move that allows the White House to avoid the escalation of a trade dispute with China while escaping some of the fallout due to Congress’s being out of town.
In the long-delayed semiannual report to Congress on currencies, the Treasury Department cited the 7.5% appreciation in the yuan /quotes/zigman/4869230/realtime/sampled USDCNY -.00% vs. the dollar since June 2010, the decline in China’s current-account surplus, as well as China’s official commitments at global gatherings to move more rapidly toward exchange-rate flexibility. /conga/story/misc/dc.html303446 Factoring in the higher rate of domestic inflation in China compared with the U.S.’s, the yuan has gained nearly 12% on the greenback in real terms since June 2010, when China took steps to allowing increased flexibility in its currency.
Reuters /quotes/zigman/4869230/realtime/sampled. China and Japan plan direct currency exchange agreement. 26 December 2011Last updated at 03:22 China has been pushing for the yuan to become an alternate reserve currency along with the US dollar China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade. The deal will allow firms to convert the Chinese and Japanese currencies directly into each other. Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs. It is the latest step by China as it seeks a more global role for the yuan. "Given the huge size of the trade volume between Asia's two biggest economies, this agreement is much more significant than any other pacts China has signed with other nations," Ren Xianfang of IHS Global Insight was quoted as saying by the Bloomberg news agency.
China is Japan's biggest trading partner. More collaboration Continue reading the main story “Start Quote End QuoteTakuji OkuboSociete Generale. China and Japan Getting Away From Dollars. The run on the dollar that could sink its value and bring surprise hyperinflation to the U.S. has just become a lot more likely. China and Japan are moving to trade each other’s currencies directly rather than use the U.S. dollar as an intermediary. This won’t lead to an immediate shift away from the dollar. After all, the greenback has constituted around 60% or so of central banks’ foreign currency holdings since at least 1995, according to the IMF’s COFER report. The change does signal to other nations that America’s main trading partners will favor the illiquidity risk of less-traded currencies over the valuation risk of holding dollars tied to unsustainable spending.
China and Japan do have debt problems of their own, but they may be wagering that two drunks trying to stand each other up over the Sea of Japan is less tiresome than levitating a much larger drunk off of his back from across the Pacific Ocean. Full disclosure: Long FXI with covered calls. Trade deficit hits $40.6B in Dec.; deficit with China is record. By Martin Crutsinger, AP Economics Writer Updated 2/11/2011 1:54:06 PM | WASHINGTON — The trade deficit widened in December, closing out a year in which America's gap ballooned by the largest amount in a decade. By Joe Raedle, Getty Images By Joe Raedle, Getty Images The deficit increased 5.9% in December to $40.6 billion, the Commerce Department reported Friday.
U.S. exports of goods and services rose to $163 billion, a 1.8% gain and the best showing since July 2008. But imports rose even faster. For all of 2010, the U.S. trade deficit rose to $497.8 billion, a 32.8% surge. Economists believe the deficit will keep widening in 2011 but that U.S. manufacturers will benefit from a weaker dollar, which makes their goods more competitive in foreign markets. President Obama, looking for ways to attack high unemployment, has set a goal of doubling the nation's exports in five years. New trade deals remain a sensitive political issue. Foreign Trade - U.S. Trade with China. Are American Infrastructure Jobs Being Shipped to China? <br/><a href=" US News</a> | <a href=" Business News</a> Copy Rebuilding America's crumbling infrastructure is a growing priority, with President Obama highlighting construction jobs as part of his $447 billion jobs plan.
The president visited the "functionally obsolete" Brent Spence Bridge in Ohio Thursday and called on lawmakers to do their part in fixing America's infrastructure. "Mr. Boehner, Mr. McConnell, help us rebuild this bridge," he said in a speech. "Help us rebuild America. In New York there is a $400 million renovation project on the Alexander Hamilton Bridge. In California, there is a $7.2 billion project to rebuild the Bay Bridge connecting San Francisco and Oakland.
In Alaska, there is a proposal for a $190 million bridge project. These projects sound like steps in the right direction, but much of the work is going to Chinese government-owned firms. New World Trade Center Tower To Be Made With Glass From China And Steel From Germany. Did you know that the new World Trade Center tower is being constructed with glass from China and steel from Germany? 1 World Trade Center, also known as “The Freedom Tower”, is not just another skyscraper. It is essentially a national monument. But that doesn’t mean that we are above awarding construction contracts to the lowest bidder.
The new World Trade Center tower will contain 250 tons of steel from Germany and the lower floors will be surrounded with blast-resistant glass from China. This is yet another example of how the U.S. economy is being hollowed out. Did you also know that the new MLK memorial on the National Mall was also made in China? Yet there was very little uproar about that in the mainstream media. The following is an excerpt from a report about the new MLK memorial in The Telegraph…. However, there has been controversy over the choice of Lei Yixin, a 57-year-old master sculptor from Changsha in Hunan province, to carry out the work. Thank you George W. Ouch. Rebuilt Ground Zero Billed as National Symbol, But Costly Construction Projects Outsourced Overseas.
This is a rush transcript. Copy may not be in its final form. JUAN GONZALEZ: This weekend, thousands of people are preparing to gather at the site of the former World Trade Center to mark the 10th anniversary of the 9/11 attacks. On Sunday, a dedication ceremony will be held for the 9/11 Memorial, which will open to the public on Monday. Construction continues on 1 World Trade Center. Once completed, it will stand 1,776 feet tall. While the 10th anniversary is making international headlines, little attention has been paid to some of the controversial aspects of the rebuilding at Ground Zero.
At a time when President Obama is launching a massive jobs initiative, key parts of the construction project were outsourced overseas. So far, just two tenants have agreed to move into 1 World Trade Center, the massive skyscraper formerly known as the Freedom Tower. AMY GOODMAN: The China Center was the first tenant to sign the deal. Welcome, Joe Nocera. JOE NOCERA: Well— SCOTT PAUL: Thank you. Glassmaking Thrives Offshore, but Is Declining in U.S. Martin Luther King memorial made in China. Ft900.pdf (application/pdf Object)
How WTO membership made China the workshop of the world. Though the government promised last month to set up a top-level enforcement structure to protect intellectual property rights, "violations of WTO norms are still pervasive," according to a paper published earlier this year by the Peterson Institute for International Economics in Washington. Subscribe Today to the Monitor Click Here for your FREE 30 DAYS ofThe Christian Science MonitorWeekly Digital Edition At the same time, large areas of the Chinese economy are still effectively off limits to foreign investors, such as government procurement, much of the financial sector, telecommunications, and other services – in some cases because the government has resisted passing the laws that would bring it fully into line with its WTO commitments, and in others because it does not properly enforce such laws.
Native firms get many advantages "Many of these advantages are not quantifiable, and that makes them hard to challenge in the WTO," though they constitute illegal subsidies, says Mr. McGregor. China Imposes New Tariffs on Some Vehicles From the U.S. Chinese Imports Hurt U.S. Solar Companies, Trade Commission Says. China Looking Into U.S. Policies in Renewable Energy Trade. The announcement comes two weeks after the said that it had accepted a request by SolarWorld Industries America and six other companies in the United States for an investigation into whether Chinese solar panel manufacturers had obtained export subsidies from the Chinese government, or had dumped solar panels in the United States for less than it cost to manufacture and distribute them.
The Chinese ministry said in a statement on its Web site that its investigation would end by May 25. That could allow the ministry to retaliate if the Commerce Department imposed punitive tariffs on shipments as part of either its antidumping investigation, for which a decision is due by mid-March, or as part of the antisubsidy investigation, for which a decision is due by mid-May. American exports to China in the solar, wind and hydroelectric sectors are tiny. American companies have also had limited success in exporting hydroelectric equipment to China. ITC Vote: Crystalline Silicon Photovoltaic Cells and Modules from China; December 2, 2011.
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