China Knows Everything in Your House Was Made in China
Think China cares if we threaten them? Doubtful. If we care to keep accusing them of manipulating their currency, maybe they'll show us some real currency manipulation and send home $2 trillion in money that we haven't paid for.
China's commerce minister warned the United States on Sunday that if it launches a "trade war" against China by levying punitive tariffs on Chinese imports, the United States will suffer the most.
Chen Deming also said the U.S. government's "obsession" with China's exchange rate could not be seriously addressed until it stopped blocking the export of high-tech products, such as supercomputers and satellites, to China. "If some congressmen insist on labeling China as a currency manipulator and slap punitive tariffs on Chinese products, then the [Chinese] government will find it impossible not to react," Chen said in an interview with The Washington Post. "If the United States uses the exchange rate to start a new trade war, China will be hurt. But the American people and U.S. companies will be hurt even more."
On April 15th - perfect timing, Timmy! - the Treasury Department is due to release its biannual report on currency manipulation because everyone else's shit obviously stinks worse than ours (!). While it remains to be seen how badly Treasury will trash the yuan, the real question is whether or not Treasury will ever grow the large low-hanging pair required to admit the United States is doing the worst of the manipulating.
Do you really want to call it manipulation? We should come up with a new word. And, um, maybe start working building on some Kansas sweatshops for those lead-laced toys we love so much.