G-20 Leaders Fail to Back U.S. Plan on Chinese Currency

The leaders of the 20 major economies failed to back a U.S. plan intended to push China to let its currency strengthen. The leaders released a statement saying all the countries pledged to avoid "competitive devaluation" of currencies, The Associated Press said.

Governments usually institute competitive devaluation -- the sudden reduction in the value of a currency -- only during a crisis. As a result, the pledge is of little value in the current dispute between the U.S. and China, which has been building for years, because competitive devaluation isn't exactly the issue now.

Instead, the U.S. had pushed for a pledge to refrain from "competitive undervaluation," but G-20 leaders refused to endorse this wording. The U.S. claims that China is keeping the value of its yuan currency artificially low, giving Chinese goods an unfair advantage in world trade. The U.S. has called on China to let the yuan appreciate more quickly.

At the same time, countries including China, Germany and Brazil have criticized the U.S. Federal Reserve's decision to buy more than $600 billion of long-term assets, saying the move will weaken the dollar and hurt the global economy. The G-20

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cynkds

Lets stop sending them the raw product of which china manufactures things then in turn around and sell it back to us DUH!!!!!!!!!!!!!

November 12 2010 at 3:05 PM Report abuse rate up rate down Reply
cynkds

Well how soon we all forget...America was destroyed in the last couple months that NumNuts was still in office..Obama has no clue which no one else does either..It should have just been allowed to run its course with no bailouts etc...In heinsight both idiots should have just given all bailout money to the citizens,with stipilation that all purchases made be for items produced in the usa.And come tax time the only way you are allowed to deduct off your credit is with receipts backing such a purchase,yes not much is made here any more but with that much out there to buy products there would have been alot of companies started up to build products made here and would have created jobs etc...The banks should have and deserved to fail,thats what happens ,As a business owner I understand and accept it is all a gamble,thats the life I choose and I dont expect anyone to bail my ass out if I make wrong choices......it is the path I chose...as for obama the scenario he inheriated was he is standing in front of a dam that is springing leaks with only a pack of bubble gum of which he is trying to plug the holes,someone tell the fool its not gonna work get him out of the way before he gets washed away,it might have had a chance with a few leaks sprung and lowering the water level behind the dam but trying to patch the leaks while adding more water (debt) to the lake behind the dam..well we know how thats gonna play out.the crap is gonna burst if it already hasn't have you ever gotten a straight answer from the ploiticians ??? the ones that claim the recesion is over???doubtful if you think you did and you believe it your an idiot.....Were screwed plain and simple....hopefully next time around if we get a chance we can still use our constitution as foundation to build america strong once again all we have to do is adhere to it strict compliance is that so hard and politicians must be held to reprensting those voters of which thet represent or face treason.....And in the same token those caught lobbying trying to influence votes should face the same sort of punishment had this happened long ago we definetly would not be where we are today..I love my country still think it is the greatest in the world but cmon people it is so polluted with greed etc we need to change were headed down the wrong path,to many being elected with their own special interest no concern about the country as a whole God Help us..

November 12 2010 at 3:01 PM Report abuse +1 rate up rate down Reply
zpainter

Looks like trouble ahead. Time to be vigilant

November 12 2010 at 8:44 AM Report abuse +1 rate up rate down Reply