“China has used currency manipulation as a form of subsidy for exports…” rather than military adventurism that exports munitions directly on unsuspecting and unwilling nations or uses its military to maintain the world being at its mercy due to its currency being the ‘reserve’ currency. (Gosh, who would do that?)
This article is playing the xenophobia card rather than discussing what’s really wrong with the US economy, capitalism.
Funny stuff, this global economy. We are taught by the masters that the invisible hand of the markets directs the economy. If things are cheap, we buy. If not, we sell. Here once more we see that exchange rates are manipulated by governments who buy and sell their currency to get the numbers they want. More of less, like playing basketball with baskets that have a controlled height adjustment so that, during the game, scoring is easier for some. It is apparent that China owns many more dollars than the US owns Chinese yuan. That seems, to me, an remarkable advantage. The trouble of being a collapsing empire is that nobody will pay much attention to the US. We must understand that China is doing big, big deals that are not in currency. For example the exchange of oil from Russia for high speed train networks for Russia. The correct “currency” is something like barrel/locomotive or something. One guesses that the Chinese economy is far bigger that we know, for there are many of these “trade agreements” that just get unnoticed by the MBA class in the US. The US Department of Commerce needs to get heavily involved with all dealings with foreign nations, and work so they are advantageous for us. Continued traverse down the lunacy trail we are on now is disastrous.
…is pretty much what CAUSED the financial collapse that’s only propped up through countries like the U.S. AND China PRINTING money.
The lunacy trail is itself an inside job. And too many regulatory agencies have been defanged since the Supreme Court shows deference to the 1%–the global oligarchs, a/k/a corporations!
Seek truth from facts.
A few years ago, 1 USD = over 9 yuan
Today, 1 USD = 6 + yuan.
The correct “currency” is something like barrel/locomotive or something<
Yes, they also have currency swaps with a number of countries. But as you noted, the trade with Russia on the basis of yuan/ruble could be huge in the not too distant future.
Chinese currency has appreciated too much too quickly over the years. Lowering it further would be sensible, since the US has gone into “quantitative easing”, that is, printing more dollars, several times for the past few years. In contrast, it is only because of the recent run on the Shanghai Stock Exchange that the Chinese conducted its first “quantitative easing.”
There is, however, a good reason for China NOT to lower its currency value: the hundreds of thousands of Chinese students would find studying in the US a more affordable enterprise. It would also dissuade richer Chinese - whose ill-gotten gains were made largely on the backs of the Chinese peasant class (mostly migrant workers) - to let their capital remain in China.
“until traders believe it is where it should be”
This is quaint notion. Why should we trust THEM? They would sell their own mother for a quid, as proved by the Great Financial Scam of 2007-2008.