Tag Archives: China’s Currency manipulation

Nixon Exported Jobs to China

Posted: October 12, 2011 

Republican Richard Nixon took a little trip to China in July of 1971 to meet with China’s Premier Zhou En Lai to open the door to trade with China a mistake the US would later regret deeply.

Nixon believed this was a bonus for his foreign relations policy since Russia and China were on shaky ground, the US came in to open up the US market to a flood of Chinese goods, enforced and pursued by future Presidents after Nixon was impeached.

In an article in the Washington Post dated June 11, 1971 Carroll Kilpatrick a Washington Post Staff Writer indicated President Nixon also lifted a 21 year trade embargo that had been imposed by President Kennedy permitting imports from China and other communist countries.

Richard Nixon was the first and only US President that opened the doors to China in poorly negotiated trade deals which today 40 years later have destroyed millions of US jobs forever.

Nixon exported jobs to China by allowing a long laundry list of goods to be imported and Americans in turn would export lumber, fertilizer, fish, farm, chemical, electronic and communication equipment products. In China huge photos of Nixon were plastered all over the country in great respect and gratitude for the lapse in judgement of the American President. 

It was a plan of balanced trade which while the US government was asleep, China began exporting more and more goods, seizing opportunities to take over US manufacturing offering cheaper labor and America fell into that trap.

China needed and wanted to import aircraft and locomotives for transportation requirements from the US which they received.

President Nixon even lifted the requirement that shipments of grain or flour be transported by American ships which reduced business for the US based shipping industry affecting jobs.

Unions Concerned About Job Losses to China in 1971

At the time in 1971 the AFL-CIO President who was George Meany was critical of the decision made by Richard Nixon and called it a Breach of Faith which would negatively impact the jobs of Americans involved in shipping by sea.

The Unions were already concerned of what these changes would mean to American jobs and that was 40 years ago.

Nixon 1971 Exported Jobs to China

Today, the US imports almost every conceivable product from China through corporations moving their manufacturing to China for cheaper labor.  Nixon wished to create “broader opportunities for contacts between the Chinese and America peoples”. 

Nixon also relaxed currency control to allow China to use American dollars and allowed US oil companies to sell oil to China’s ships. 

You could say that Nixon gave away the store, lock, stock and barrel a very huge mistake. Nixon had no controls or regulations regarding trade nor did he study what a trade deficit would mean to the American economy. 

Further outrageous comments from Nixon indicate he had no idea what this would mean forty years later and had not the foresight or intelligence to protect America jobs. 

On April 19, 1971 Nixon said when asked about trade with China it was “up to them”.

“If they want trade, we are ready. If they want to have Chinese come to the United States, we are ready. We are also ready for Americans to go there, Americans in all walks of life.”

In some convoluted way Nixon was naive as to what China had planned which was a coup of the US economy in retrospect they gladly stepped up their assault on America economically.

Nixon Exported Jobs to China

Now we know, that Nixon opened the proverbial pandora’s box that was best left closed for trade with China which has all but consumed American manufacturing, American jobs, the American economy and created the trade deficits that now exist.

These trade deficits which has negatively impacted on the livelihoods of American workers are not entirely responsible for the woes of America, but they are a very serious integral part of the problem.

In fact Nixon allowed China to destroy the US economy not with a cold war, but an economic war that has led to the joblessness and desperate times we have in 2011. For 40 years the United States has turned a blind eye to what’s been eating away at jobs, and like Donald Trump says:

China is Eating our Lunch

China’s population in 1971 was 800 million people and today it is 1.9 billion people a vastly growing population and trade with China has become one sided, out of balance augmented by artificial currency manipulation on China’s part.

China has five times the work force of the USA, enough to crack out products all day long for American consumption including Wal-Mart which is China’s distribution center to America.

Back then, Nixon was looked upon as a heroic President to have opened the doors to normalize relations with the closed door China communist country and opening opportunities in trade while he gave away the store. Nixon believed that eliminating “controls” on trade with China was a positive step but for whom?

China’s Assault on the US Economy

Last year China threatened retaliation against US companies in China if the US Congress forced a re-evalution of the Chinese currency. In July of this year Bloomberg reports that Chinese hackers broke into the International Monetary Fund’s computers that were traced back to China’s spies. What role does China want to play on the world front and what do they gain by stealing, infiltrating and economic takeovers? 

The inventory of stolen documents have never been revealed to the public yet but they left a trail. (Bloomberg)

The trade war continues to leach jobs from America, having taken over the fields of electronics, the steel industry, food, green energy, rare earth minerals and manufacturing in just about any industry you can think of today.

By stealing ideas, copying and using stolen blueprints to make products to sell back to the American consumer China has affected job and economic growth in a severely negative fashion.

Americans are the biggest consumers in the world, however that trend will have all but dried up if the recession continues to increase the ranks of the jobless.

 What will the future hold in the Trade War with China -is not up to them like President Nixon declared. It is up to America.

 A Long Long List of American Corporations that have Exported Jobs to China and Foreign countries is available  HERE

Asia Pacific G-20 Leaders Meet in South Korea

Nov. 13, 2010 The World Leaders arriving at the G-20 Meeting in the Japanese city of Yokohama after meeting in South Korea where the currency dispute broke out with China.

Free trade is a hot topic in this round of talks and how to grow the world’s economy with the group known as APEC – the Asia Pacific Economic Co-Operation.

Today Saturday November 13, 2010 the talks are expected to concentrate on a treaty called the TPP -the Trans Pacific Partnership. More trade treaties are written which join the global community but as far as fairness in the dealings the US is not gaining economic ground.  China’s manipulation of its currency and refusal to open its markets to American goods is causing a trade imbalance which is harming the United States.

With billions of dollars at stake the US buys more exports from China, than China buys from the United States and President Obama failed to open the doors as have other US Presidents to their 1.5 billion consumers.

It appears that the US has lost the trust of the global community in handling its own financial affairs and still has not put its house in order financially. Today two years after the meltdown in 08,  more Americans face foreclosure by banks who are forcing homeowners, out of their homes without documentation.

The trade treaties do not prevent other countries from not buying US goods but the Asia Pacific countries expect the US to open their markets, after all Americans consume more imported goods including food than any other country.

Obama Meets with PM. Kan of Japan -Looks like he Had a Good Time

Another country, another photo op for the President but hardly any solid results in correcting the trade imbalances and pumping up the economy at home.

Meanwhile protesters are arriving in Yokohama to set up camp to protest the world globalization as they did at the last summit in Toronto Canada.  The cost to Canadian taxpayers for that G-20 was 1 billion dollars which the Harper government could ill afford.  Governments are still spending like drunken sailors while taxpayers are being taxed more each year, which puts less money in the economy for businesses to be profitable.

To-date  Obama has traveled to four countries to peddle US goods from India, South Korea, Japan and Indonesia stating he has “deepened friendships” however that does not translate into jobs or dollars for the US economy.  This was not a “friends” tour but seriously the security of America is financially at risk as well as its future prosperity.

There is a trade imbalance and the fact that China’s trade surplus is 3% this year has more to do with American’s tightening their belts and buying less from China due to the recession.  The United States should consume less of China’s products and export more to other trading partners.

China’s currency has risen 25 percent over the US dollar and calls for China’s dollar to become the world currency have not gone unnoticed by the world.  China after all has the money to call the shots now that the US is in a financial ruin of its own making and of which it has not recovered.  The old saying ” always hit your enemy when they are at their weakest” fits the current economic situation.  But if China continues on it’s path to become the world’s leading currency the Americans are too busy fighting each other to do anything about it.

Tags: World Leaders Meet in Japan for another G-20 Meeting, Obama making Friends-does not bring home the bacon, economic treaties and trade imbalances, China’s Currency manipulation, President Obama globe trotting, economy, global economy, globalization.