President Obama, in 2010 on a foreign far east trip stopped in China. He spoke about the need to get a better trade balance between American and Chinese manufactured goods. This trade imbalance has always been in favor of China since Congress approved this pact and unfortunately little has changed! Through outlet stores like Wal-Mart, Target, and Home-depot, cheaper goods and materials have flooded the American markets.
We Americans have benefited by paying lower prices for most items until increasing inflation hit this year. However, the American industries have paid a very high price in lost jobs, with many companies going bankrupt. The free trade agreement with China is out of balance by Multi-Billions of dollars in favor of China! This does not include hundreds of millions of dollars in outright gifts of foreign aid to china in the last three years!
The worst situation is our American Big government borrowing $1.15 trillion from China. Since we owe China this money, they can dictate the kind of terms and the toughness of the game being played. China has developed into a world leader, and we as Americans have helped them to have the money to buy vast resources and raw materials that ultimately hurt American workers and our own job growth while building their economy.
China is very proactive on the world stage in almost every country buying raw commodities, from diamonds to wheat and metals -- then exporting back millions of items such as, toys, solar panels, industrial supplies, shoes, and computers, etc to Americans. Thus, they are able to gain an even bigger share of the world currency supply. Until China increases the value of the Chinese Yuan -- which is now undervalued against the American dollar, we Americans face even more inflation here at home and less exports to a Billion Chinese people.
Only when we stop spending and borrowing in Washington are we going to start to bring down our national debt. The President and Congress should take action by lowering taxes and regulations on all businesses and send a signal to former American companies off shore to come back home to lower Corporation taxes. We would see unemployment disappear with a jump in good quality union and non-union jobs with labels like (Made in America) for export.