U.S. seeks Brazil's support on yuan

Les États-Unis n’arrêteront pas de faire de la pression sur les Chinois, pour quelle raison ?

Parce que le peuple américain en a marre et écoeurer de voir leurs fleurons industriels se délocaliser pour un simple esprit mercantile, nous peut-être en tant que Canadien on dort sur le gaz, mais le peuple américain ne se laissera pas faire !

Certaines élites américaines (CEO, Banques), leur avaient vendu les mérites de la mondialisation, cette mondialisation a de plus en plus un goût amer, surtout avec un chômage persistant.

Si la Chine ne réévalue pas sa monnaie, la guerre économique persistera, et malheureusement le Canada subira les dommages collatéraux de cette guerre.

Et, nos médias québécois, ça, ne vous tentent pas de parler des vrais enjeux économiques, au lieu de parler ‘du chien écrasé’.


Extrait de : U.S. seeks Brazil's support on yuan, Joe Leahy, FT.com, February 8, 2011

 

(FT) -- The US is attempting to enlist Brazil in a united front against China's allegedly undervalued currency, as Latin America's largest economy struggles with a flood of cheap Chinese goods and a surging Brazilian real.

Tim Geithner, US Treasury secretary, visited São Paulo and Brasília on Monday to lay the groundwork for the move ahead of a meeting of the Group of 20 nations this month and a planned visit by Barack Obama, US president, to Brazil, which is expected in March.

"Brazil is seeing a surge in capital inflows," Mr Geithner said in prepared remarks for a speech at a São Paulo business school. "These flows have been magnified by the policies of other emerging economies that are trying to sustain undervalued currencies with tightly controlled exchange rate regimes."

Any alignment with the US on the issue of China's currency would mark a fundamental shift for Brazil. Luiz Inácio Lula da Silva, Brazil's previous president, had pursued a trade policy that was partially dictated by his vision of a grand "south-south" alliance among developing countries.

His pragmatic successor, Dilma Rousseff, is more concerned that Brazil exports primarily commodities to China while its domestic manufacturing industry is being undermined by a strong exchange rate and cheap imports.

Ms Rousseff has also toned down her predecessor's criticism of US monetary policy, which Mr Lula da Silva's administration blamed for exacerbating global capital flows.

Brazil's currency has appreciated nearly 40 per cent against the US dollar over the past two years, making Chinese imports cheaper than domestically manufactured goods. The Chinese government has permitted only a gradual rise of its currency, the renminbi, against the dollar.

One person familiar with the government's stance said Brazil was considering a public declaration on global imbalances and China's undervalued currency during Mr Obama's visit.

"The idea is we might issue a communiqué in which maybe we can work in common language to try to stress this matter," the person said.

"There's no better ally for the US than Brazil," said Mauricio Cárdenas, director of the Latin American Initiative at the Brookings Institution, a Washington-based think-tank. "Brazil is a voice that is heard on these debates. What Brazil is saying is also something that the smaller economies in Latin America have thought for some time."

Au moins, il y en a qui n’ont pas peur de se mouiller les pieds!

In a Treasury report released last week, the Obama administration stopped short of labelling China a "currency manipulator" amid concern it could lead to trade action and hurt the already sluggish US recovery. The US is instead seeking multilateral support on the issue.


Extrait de: US looks for friends in fight against undervalued yuan, BBC News, 8 February 2011

China's currency is back in the spotlight amid reports that the US has sought to increase the number of countries pushing for a stronger yuan.

During a visit to Brazil, US Treasury Secretary Timothy Geithner discussed the manipulation of currency values, the Reuters news agency reported.

He also urged Brazil to put pressure on China to allow the yuan to appreciate, the Wall Street Journal said.

China is accused of keeping its currency weak to boost trade.

The US argues a weak currency gives China an unfair advantage in global trade, keeping Chinese exports at artificially low prices.

Et ils ont tout à fait raison !, laisse ton argent flotté comme tout le monde.

The US hopes it will find a willing partner in Brazil because Chinese imports are also hurting its economy.

Brazilian industry leaders recently complained to the government that manufacturers were struggling to compete with a slew of cheap Chinese goods at home and globally.

Le problème de tous les pays industriels !

'Global stage'

Mr Geithner, one of the US's most powerful economic policymakers, travelled to Brazil to meet with President Dilma Rousseff and members of the government.

Following the meetings, Mr Geithner said that the US and Brazil would work "together on the global stage to build a more balanced and more stable, stronger multilateral economic system".

According to the Wall Street Journal, which was quoting a person familiar with the discussions, the two sides did not lay out any specific plans for dealing with China's currency.

U.S. Urges Brazil To Pressure China

 

U.S. Treasury Secretary Timothy Geithner urges Brazilian officials to help pressure China to let the Yuan appreciate while U.S. Commerce Secretary Gary Locke raises concerns about India's restrictions on solar-power-technology imports.

 

The Wall Street Journal 2/7/2011 11:53:37 PM

However, the paper quoted the source as saying that they may now speak with a common voice on the issue at the upcoming meeting of the G20 countries.

Reuters said that Mr Geithner raised the question of China's currency during a meeting with Brazil's Finance Minister Guido Mantega.

According to the news agency, a government source said that when Mr Geithner brought up the subject of the yuan, he was told that Brazil "was against manipulating exchange rates".

Cheap Steel

The US has already started taking steps against Chinese products it sees as damaging its domestic producers.

On Monday, a US trade panel approved duties on steel drill pipes from China.

Et nous au Canada, on fait quoi pour protéger nos industries, pensez-vous qu’en vendant des boulettes de fer, on va devenir riche !

The US International Trade Commission said there was evidence US companies were being harmed by low-priced imports of the pipes, used in oil drilling.

The tariffs are the latest in a number of measures levied against Chinese companies in the last few years.


Pragmatism beckons Brazil

Pragmatism beckons

Jonathan Wheatley, former Brazil correspondent and deputy emerging markets editor, talks to Seb Morton-Clark about US attempts to obtain support from Latin America's largest economy against China's monetary policy.  FT/video, (2m 58sec)