Great ready for lots of talk about a “trade war” and “spiraling protectionism.”
A bi-partisan group of Representatives and Senators are set to introduce a bill aimed at Chinese imports, singling the country out due to manipulation of its own currency.
Sponsors of the Currency Reform for Fair Trade Act include Reps. Tim Murphy and Tim Ryan, Senators Jim Bunning and Debbie Stabenow (of Michigan).
Technically the bill is being re-introduced, as it came up in 2007 and died quietly. But things have changed since then, most notably the economy, but also the re-emergence of labour-tied Democrats in Washington.
We assume it’s going to die. The position of the administration and the Treasury is that China is not a currency manipulator and it certainly can’t sign a bill that punishes our #1 lender. They’ve kinda got us over a cliff on that one. But if politicians and the media are forced to debate this issue out loud for a while, it’ll be a victory of sorts for its founders.