Strength in emerging economies raises trade fears MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON (AP) — China and other emerging nations are lifting the global economy, but their strength threatens to come at the expense of the United States and Europe.
The emerging countries are benefiting from low-priced exports fueled by artificially low currencies. That's raising the prospect of trade frictions for years to come.
In its latest economic forecast, the International Monetary Fund predicts the world economy will expand 4.8 percent this year and 4.2 percent next year. That would far surpass last year's 0.6 percent decline, the worst performance since World War II.
Growth in China is forecast to be 10.5 percent this year and 9.6 percent next year. Brazil's economy is expected to grow 7.5 percent this year before slowing to 4.1 percent next year.
But the IMF forecast, released Wednesday, points to lingering weakness in the United States and Europe after the worst recession in decades.
The agency said that the global economy will require a balancing act: Countries with huge trade and budget deficits such as the United States will need to boost exports. And countries with big trade surpluses such as China must reduce their dependency on exports and boost domestic demand.
But the U.S. has argued that China has manipulated its currency to gain trade advantages and helped suppress U.S. exports. The undervalued Chinese currency has made Chinese goods cheaper for American consumers. It's also hurt U.S. companies by making their products costlier in China.
China said in June that it would move to a more flexible exchange-rate policy. But the yuan has risen by just over 2 percent since then.
Lawmakers facing midterm elections have put pressure on the Obama administration to impose trade sanctions on China.............................>>>>.....................>>>>.........................http://hosted2.ap.org/FLJAJ/d0.....451796f60da7cc14afe7
It isn't a question of "if" China will join the rank of the superpowers but "when".
America will remain a superpower, too --- but will it be #1 or #2 ... that is the question.
George Amedore & Christian Klueg for NYS Senate 2016 Pete Vroman for State Assembly 2016[/size][/color]
"For this is what America is all about. It is the uncrossed desert and the unclimbed ridge. It is the star that is not reached and the harvest that is sleeping in the unplowed ground." Lyndon Baines Johnson
It isn't a question of "if" China will join the rank of the superpowers but "when".
America will remain a superpower, too --- but will it be #1 or #2 ... that is the question.
if we don't demand more of our young adults - those "graduating " high school we will be #2 if not #3 quickly, it will be simple math a 5th grader(30 years ago) could understand
Talking to each other is better than talking about each other
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.......I hate those pits.......they will now officially sell only american goods.....
