The Chinese currency reevaluation-2

I have been quietly emphasizing in my blogs that the world has changed and America no longer produces the stuff it needs on a daily basis. The brand names maybe American but the work is done overseas and then sold at outrageous prices in the U.S. Today there was news that even injecting 80 billion dollars, the car manufacturers are moving jobs to Mexico. This thing is not been addressed that if there are no jobs, how will the Americans afford to buy a car even if they are made cheaply elsewhere. It can be that if the U.S. dollars is depreciated while the Chinese Yuan is appreciated considerably, but even with that happening, the U.S. economy has moved to information technology and services society and we produce very little low end commodities.

Even if the Chinese labor becomes expensive, the American companies will try to find new sources of cheap labor in Asia and other unexplored places where the regulation is lax. So putting more tariffs on Chinese commodities will not solve the U.S. trade problem but it will shift the problem to several countries instead of one. The only way to remedy is to start manufacturing production here which can be done competitively (like apparel, etc) and having and developing a saving culture instead of the spending culture that is actively promoted here by the Government.