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China Currency Value Rises 40%, U.S. Predicted to Enjoy First Trade Surplus with China Since 1985
After Overnight Renminbi Appreciation, Trade with China to Actually Provide Benefits to U.S. Workers, Domestic Firms
WASHINGTON - With Congress poised to pass the "Nixon Did It in '71 Currency Manipulation Fix-It Act," which would impose surcharges on Chinese imports, China today appreciated the value of its currency 40 percent relative to the U.S. dollar, Google News reported.
The Obama administration predicted that its goal of doubling U.S. exports in five years would be met well ahead of time with the United States expected to achieve a trade surplus with China for the first time since 1985. China is also expected to begin transferring billions in stimulus funds to the United States to create 2.4 million American jobs to replace the U.S. jobs lost to China since 2001.
Trade wonks were stunned.
"Years ago, I made a bet with Fred Bergsten that I would eat my shoe if anything like this ever happened," said Walli Lorach, co-director of Public Citizen's Global Trade Watch. "I guess I'm going to spend the afternoon looking for a good leather recipe."
In a gesture of goodwill and reciprocity between the two countries, President Barack Obama pledged that the United States would continue to purchase billions in Chinese goods, although at a fair price, and would safeguard the value of China's billions in Treasury bills by not devaluing the dollar.
In another tale from the bizarro world of U.S. trade policy, a news conference organized by Sen. John McCain to call for the Obama administration to revive the Bush-Clinton-Bush trade agreement model in Trans-Pacific Partnership (TPP) negotiations was disrupted by angry tea party protestors screaming "No NAFTA with 'Nam!"