Wednesday, January 27, 2010

US Unemployment Being Outsourced to China, making Hu-Jintao Very Nervous

This video was sent to us by one of our readers (we have seen it before and may have posted it earlier), but we are posting it again since we believe it is a must watch. A rapidly weakening U.S. consumer, has caused widespread factory closures and unemployment across China. In addition from 2005-2008, China had been revaluing the yuan upwards against the dollar, but it stopped the process when the worldwide financial crisis hit. The rapid pace of yuan revaluation in 2008, coupled with the financial crisis caused more than 50% of Chinese toy manufacturers to go bust, unable to keep costs under control.
To top it the Obama administration's rhetoric for China to free up speech, coupled with world-wide pressure for it to let the yuan float upwards (killing their exports); has sent the Chinese leadership into a tizzy. Unemployed Chinese workers complaining and organizing through blogs, Twitter, YouTube or Facebook is the first step to a people's revolt. China is hell bent on avoiding that.

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