When Congress comes back next week, they're not going to move directly to the Obama jobs bill. Instead, they're going to take up a different measure that could potentially lead to U.S. job creation and is more likely to pass -- the Currency Exchange Rate Oversight Reform Act of 2011.
The bill is designed to give the Administration authority to take corrective action against artificially undervalued foreign currencies, particularly the Chinese renminbi. It is widely believed that the fair market value of the renminbi is being supressed by the Chinese government in order to give them an advantage in foreign trade. According to a new report from the Economic Policy Import, the U.S. trade deficit with China has killed 2.8 million American jobs since 2001. It's likely that many of those job positions, which were in manufacturing, could be recreated if the renminbi were valued more fairly.Read Full Article