wrote:
It's actually starting to decrease, the trade deficit with China due
to
increased construction, requiring more imports from other countries,
US
included.

The real problem lies in their currency, pegged to the U.S. dollar.
They need to let their currency free-float on the market before
things
can really even out.

Here's another article explaining why China's currency isn't
undervalued, by Prof. Michael Connolly, U Maimi Chair of Economics:

http://cet.hnu.net.cn/ca_fx22.ppt

"The Current Account and the Exchange Rate: The tail does not wag the
dog"

"the real exchange rate has remained relatively stable since 1986, due
largely to greater inflation in China that has offset yuan devaluation.


In fact, in 2004 it only appreciated 2%. The RMB has in fact slightly

depreciated in real terms since 1986."

So China's currency isn't the IMF-style "dig your own grave" free float
(just ask Thailand and George Soros.) US monetary policy intervenes all
the time to control the dollar. EU member currencies are pegged to the
EU, and EU itself is heavily regulated by crawling peg.

If "free float" is so good, how come we ain't doing it? I needn't
remind you our US$ was pegged to gold for hundreds of years, and the
PRC is only around for 50 some years.

Give them a chance to do it on their own, for their own interest.
That's what we'd do.

Then it begs the question why are we bashing China and scapegoating
their currency for our problems. Because when it comes to our problem,
it's to hell with everybody else - especially for our leaders of
society to keep their wealth.

Have you seen what happened to the oil stocks since we invaded Iraq on
false WMD accusation and dirty bombed Iraq from highest living standard
in region back to the stone age? The stocks are going thru the roof:

http://money.cnn.com/quote/quote.htm...HAL&time=3year

Supposedly the Chinese gov't are gearing up for this, or they're just
paying lip service to the U.S. Congress, nobody really knows except
for
Beijing.

Congress won't do anything but pass unenforcable puffery legislation
out of fear of the backlash from U.S. business interests and Chinese
relations.

A tangled web, indeed