How China Manipulates its Currency to Steal US Manufacturing

[JimBowie1958]

The internal purchaisng power of the Chinese Remenbi Yaun (CNY) is about 3.5 CNY to the US dollar, while the official exhange rate is womewhere just under 7 CNY per USD.

So this is how China does it.

1. Walmart contracts a Chinese supplier to make 100 widgets, and the cost to make them is 50 CNY ($14).

2. The widget is then sold in the USA for $15.40 with a 10% profit.

3. This $15.4 is then converted back into CNY by Walmart at 7 CNY/USD for 107 CNY. which then buys 200 (twice as many) widgets and pockets the 7 CNY extra.

4. These widgets are then sold for $30.80, doubling Walmarts money with each iteration.

5. Rinse and repeat untill your family is the wealthiest family in the US. This is known as arbitrage.

Now this is why the policy sucks jobs out of America; Walmart makes even more money by dismantling their operations in the US and moving them to China and run everything there, thus getting a 50% reduction in all their manufacturing and assembly costs.

Our government has been letting this go for decades now due to the excessive influence of corporations and their lobbyists who want to take advantage of this arbitrage system.

 

[JimBowie1958]

lol, was I too boring on this topic?

I think it is an important one to grasp as we lose more jobs to China every year.

 

[PaintMyHouse]

The internal purchaisng power of the Chinese Remenbi Yaun (CNY) is about 3.5 CNY to the US dollar, while the official exhange rate is womewhere just under 7 CNY per USD.

So this is how China does it.

1. Walmart contracts a Chinese supplier to make 100 widgets, and the cost to make them is 50 CNY ($14).

2. The widget is then sold in the USA for $15.40 with a 10% profit.

3. This $15.4 is then converted back into CNY by Walmart at 7 CNY/USD for 107 CNY. which then buys 200 (twice as many) widgets and pockets the 7 CNY extra.

4. These widgets are then sold for $30.80, doubling Walmarts money with each iteration.

5. Rinse and repeat untill your family is the wealthiest family in the US. This is known as arbitrage.

Now this is why the policy sucks jobs out of America; Walmart makes even more money by dismantling their operations in the US and moving them to China and run everything there, thus getting a 50% reduction in all their manufacturing and assembly costs.

Our government has been letting this go for decades now due to the excessive influence of corporations and their lobbyists who want to take advantage of this arbitrage system.

Turning Marxist I see...

 

[Arianrhod]

lol, was I too boring on this topic?

I think it is an important one to grasp as we lose more jobs to China every year.

You're confusing the posters on your side. The Rightist line is that Walmart is good for America because they buy their cheap shit there. You didn't clear your thread with the proper authorities.

 

[JimBowie1958]

You're confusing the posters on your side. The Rightist line is that Walmart is good for America because they buy their cheap shit there. You didn't clear your thread with the proper authorities.

Lol, I am not an ideological conservative. It's just that the left is spewing so much shit these days I can hardly ever let the libtard in me get any face time.

Seriously, this is an important issue and China's currency manipulation needs to be brought to a halt, and the only ones that really cant see this are the ignorant and the corporate crony hacks.

 

[Arianrhod]

You're confusing the posters on your side. The Rightist line is that Walmart is good for America because they buy their cheap shit there. You didn't clear your thread with the proper authorities.

Lol, I am not an ideological conservative. It's just that the left is spewing so much shit these days I can hardly ever let the libtard in me get any face time.

Seriously, this is an important issue and China's currency manipulation needs to be brought to a halt, and the only ones that really cant see this are the ignorant and the corporate crony hacks.

Well, you know that and I know that and Bernie Sanders knows that, but it's been going on for decades and as long as Walmart's defenders get their cheap shit, not too many people seem to know or care. Unless the trend in tax breaks that reward corporations for sending jobs overseas is ended, it'll just be SSDD.

 

[JimBowie1958]

Well, you know that and I know that and Bernie Sanders knows that, but it's been going on for decades and as long as Walmart's defenders get their cheap shit, not too many people seem to know or care. Unless the trend in tax breaks that reward corporations for sending jobs overseas is ended, it'll just be SSDD.

True and it is a crying shame.....