Friday, January 23, 2009
Geithner Warning on Yuan May Renew U.S.-China Tension
"Timothy Geithner’s warning that President Barack Obama believes China is “manipulating” its currency..."
Here we go again!
This is terrible policy and a continuation of what the last administration was doing. No change whatsoever.
The U.S. believes that the solution to our "problem" lies in making America an export-driven economy like China, however, only way to accomplish this--to gain comparative advantage--is to bash our currency down relative to China's currency. Ultimately this results in a lower standard of living for Americans vis-a-vis the Chinese. It's gold standard thinking, but we are not on a gold standard anymore. Someone in Washington ought to wake up and recognize that.
Read article here.