Is China the Scapegoat for U.S. Unemployment?

It’s an election coming up in the U.S. We are seeing many reports on the U.S. criticizing China for manipulating its currency and destroying the U.S. manufacturing jobs through their mercantilist policy.

It is true that the majority of the U.S. manufacturing base has been shipped to China, which has triggered the destruction of the U.S. middle class to some extent.

Both the U.S. and China have been printing out their fiat currencies. The currency manipulation has been going on both sides.

The U.S. sold treasuries to sustain its system and China got manufacturing, technology, capital and a market to export. China’s trade surplus was recycled into U.S as a form of cheap credit. This reciprocal relationship has sustained the extent and pretend scheme.

Again (I raised this issue before), who is profiting most from this peculiar relationship?

Again, the U.S. has gutted its industrial base by policy choice.

Appreciation of the Yuan wouldn’t fix the structural problems of the U.S. Most of the American problems are home grown. The U.S. leadership knows that.