Trump want’s to bring American jobs back to America From China and here’s how it’s done.
American manufacturers sell their products in America where $1 American is worth 6.31805 Chinese dollars called Yuan. The conversion rate is the amount of one currency that’s the equivalent of a different currency. Who decides the conversion rate to convert Chinese dollars to American dollars? Totalitarian China.
If a $100,000 America bulldozer is made in China and sold in Oklahoma the buyer must pay China 631,805 Chinese Yuan. The buyer must find a bank that has 631,805 Yuan, pay that bank $100,000 U.S. dollars and that bank will send 631,805 Yuan to the factory in China. Because the Chinese manipulate the exchange rate more bulldozers will be bought from China because they are cheaper to buy there.
If China lowers the value of the Yuan to 7.02005 to the American dollar then the American buyer only needs $90,000 to pay for the Chinese bulldozer. Bulldozers will be made in China and American workers will lose their jobs making bulldozers.
So Trump must get the Chinese government to change the value of Yuan which will make the Chinese made bulldozer the same price as an American made bulldozer. How can he do that? By making China a deal.
China practices what’s called a “Dirty Float” for exchange rates which means they manipulate the value of their currency instead of letting the market determine the exchange rate. They do that to make their products cheaper so more Chinese products will be bought. How can Trump get China to change their exchange rate? One way is to add a duty to all goods make in China so Chinese products sold in America will be more expensive than American made products. In effect China will have more to lose than to gain by their Dirty Float.
It’s against the idea of a free market when America adds a duty to Chinese products so it’s not a good solution. The better solution is a free market but governments around the world have manipulated their currencies and increased their duty rates so it’s harder to know what a free market exchange rate really is but the free market must be fought for so as a threat China could be told to expect higher duties on Chinese products until and unless China joins the free market. Can Trump get the Chinese to agree to stop their currency manipulation?
One thing is certain. Obama would never try it. Proof that he would never try it is: he hasn’t tried it. Trump has announced he will get American jobs back to America. The above shows one way he can do that. There are other ways too but Trump can’t do it unless and until he’s President. America has a much better chance of getting China to play fair by electing Trump than Hillary who is so Communist and so Left Wing that America has more chance of becoming China than getting China to stop their dirty float.
Hillary’s not communist? Yes she is and she said it and it was recorded and it’s in “The Seduction of Hillary Rodham” by David Brock on page 98 para 2 lines 10 & 11.