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2012/07/16

China Quotation of the Day: Revaluing the Chinese Yuan, Good or Bad?

From Steve Forbes and his amazingly usefull (and dog-eared) How Capitalism Will Save Us: Why Free People and Free Markets Are the Best Answer in Today's Economy
"...fair traders want to pressure China to change the value of the yuan. This would result in a de facto tax on Chinese products. Chinese exports to the US would go up in price. The cost of those Chinese socks you bought would go, say, from $2.00 to $2.50. We'd buy fewer Chinese goods. Or the price of those computer motherboards imported from China would increase, driving up the price of American computers. People would be able to afford fewer PCs; the market for Chinese parts would shrink. Result: the US trade deficit would be reduced."

C-Span BookTV on the book. 


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