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Thank you very much snow on -- this issue of currency manipulator you've probably heard Mitt Romney talking about a promising to pace that label on -- day want.
If he's elected president would need maybe new tariffs on Chinese goods and a possible trade war that's what some people say.
Is it possible the Chinese then would react.
And get out ahead of this by strengthening their currency on purpose there's been some speculation to that effect and Gordon Chang author of the coming collapse of China.
Is here with this -- studio to talk about that.
What do you make of -- that the Chinese.
Are kind of afraid of -- Romney presidency presidency essentially.
-- People's Daily the Communist party's flagship publication has been -- waging an unrelenting campaign against the Republican candidates for about six weeks now.
And I'm not surprised that they're trying to increase the price the value of their currency.
Because they do wanna take some of the wind out of the sales front but I'm sure that after the election we're gonna see the Chinese currency go back down again -- do this all the time you know it's very uninteresting.
I think the policy.
Perspective that Romney's taken this time around given that he's the Republican and -- think gulf free trade Republican party's gonna promote that but Romney.
Has been a tough talker.
On China so earlier this hour you may have seen this already the Johns candy from Forbes was on -- so that they'll be supportive of many Romney's policy think she's going to win.
But does not support how he's talked about China -- -- react to -- but first here's -- John -- told us earlier in the hour.
-- I wish he would.
Move away from some of that stuff about getting tough on China -- it doesn't work the voters don't believe that these Americans always believed.
But they're good enough that they don't need help but they don't need to be protected from others it's a bad message to very ambitious compound.
OK so the voters don't believe it says John -- What Romney's been saying about China he thinks he should move away from rethink.
Well I think that regardless of who was elected on November 6 we're going to see very different time policies.
Because Washington is going to have to react to Beijing which is moving in all the wrong directions on trade.
So there's going to be a real policy response I -- that a lot of this is campaign rhetoric right now but it is going to really change the way in the administration's going to deal with China because we really don't have any choice what about that -- well that's the point didn't do we have a choice.
John ten years -- some others that support free -- -- -- we do we need China understand they need us but we need them as well in the long term and -- the last thing you need to slow economy.
You've heard this over and over to -- -- -- Great Depression rhetoric of I think you need a strong -- in a slowing economy should say is a trade war.
Yeah but we're not gonna have a trade war because current account surplus countries like China.
Don't start them and -- certainly not going to start it.
All we need to do is talk about trade and currency and in some very candid and frank manner but wouldn't this Donald Trump likely talk of real tough China talk and even -- a label as a currency manipulator which by the way we haven't done since 1994 President Clinton.
Labeled the Chinese is that manipulator -- currency wouldn't that essentially started a trade war now because China can afford to do it.
Last year China's merchandise trade surplus against the United States was a 190 point 5% of its overall surplus.
That's an incredible number and that number is gonna go up this year because China's exports to Europe or tumbling -- and exports in the US are going up so China's been running these enormous deficits with the rest of the world -- surplus with us they cannot afford to start a trade war what's really happening in China by the way the numbers the other day showed a slowing.
Although I thought the last month may -- showed a little bit us.
That the economy stabilizing and maybe the worst was behind them is it.
No I don't think so they got at least one or two more quarters of declining growth.
I don't think they have seven point 4% growth which they claim for the third quarter -- more like zero or 1% what you start looking at -- electricity numbers.
The manufacturing surveys the price indices it shows an economy which is in distress you talked oh you don't by the official government statistics in China which you talked about but Gordon thank you for coming in today -- always -- checked -- -- thank.
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