Jasper 2013-2014 Fall Rohan Trivedi

Item #8 Resolution to Combat Currency Manipulation PRO

1. Eliminating Manipulation will benefit

2. Manipulation harms US trade in the Pacific.

3. Global trade imbalances affect American jobs
I ndustry Market News, February 26 2013
Eliminating currency manipulation would reduce the U.S. trade goods deficit by at least $190
billion and as much as $400 billion over three years, allowing the U.S. to reap enormous
benefits without any increase in federal spending or taxation. This would reduce U.S.
unemployment by 1 to 2.1 percentage points and create between 2.2 million and 4.7 million
jobs; between 620,000 and 1.3 million of those jobs would be in manufacturing. In addition,
U.S. GDP would increase between 1.4 percent and 3.1 percent. The Group of Seven (G7) top
industrial nations is concerned that continued currency manipulation is creating dangerous
instability in the global economy. The organization, which is comprised of the U.S., Canada,
France, Germany, Italy, Japan, and the U.K., recently saidits members are committed to
market-determined exchange rates and will remain oriented towards meeting our respective
domestic objectives using domestic instruments.

The Wall Street J ournal, September 12, 2013
Potential currency manipulation is one of the aspects of trade where there is no
enforceable mechanism, Mr. Levin said. Lawmakers and officials arrived at no
conclusion about whether exchange rates belong in the trade pact, he said.
Outside the TPP, the Obama administration officials also discussed ways to address
currency concerns with foreign countries both individually and through international
groups such as the Group of 20, according to a person familiar with the meeting.
CNN, November 11, 2012
The U.S. is running a trade deficit -- meaning it imports more goods than it exports. China,
on the other hand, has a trade surplus. In October, China shipped $25 billion in goods to the
U.S. but bought only $7 billion in return.
That keeps American manufacturers from creating jobs at home -- which is exactly why
President Obama is hoping to double American exports in the next five years.
Meanwhile, the Federal Reserve is trying to promote domestic job growth through a program
called quantitative easing, announced last week.

The policy aims to lower interest rates and encourage consumer spending, by pumping
another $600 billion into the U.S. economy through the purchase of long-term Treasuries. In
turn, the Fed hopes a boost in consumption will generate growth and create more jobs
domestically.