China is to blame for the currency tensions as the cheap yuan is contributing to global trade imbalances, says Nobel prize-winning economist Paul Krugman. "China is behaving badly⦠The U.S. is loosening monetary policy with the side consequence of a weaker dollar, (while) China is actually pursuing policy tightening to offset the inflationary impacts of an artificially weak renminbi so⦠China is really the bad guy in this," the Princeton University professor told CNBC Thursday. Despite Beijing's promise to allow a gradual appreciation of the yuan, Krugman saw "no sign of any honest intention on the part of the Chinese to actually move (on the yuan)." http://www.cnbc.com/id/39664004
1 US dollar = 7 chinese yuan. There is not much difference. 1 US dollar = 81 japanese Yen. 1 US dollar = 44 indian rupees.
It's sort of silly to pain one country as bad and the other good in a currency situation. The fact is both countries will and have to act in their own self interest. That is often not congruent with the other countries strategy, but it doesn't make that country bad. They might be misinformed, but then again they probably think we are.
it really annoys me that Krugman, who lives in what is still an incredibly rich country - and not only that, works at Princeton as a tenured prof, paints China, where many people still live in poverty in the countryside, as the "bad guy" isn't it kind of ridiculous to demand that the Chinese should do something that they don't think is in their self-interest, given their per-capita GDP is way lower than the US? sure, let's negotiate with other countries. But this rhetoric about "bad guy" just taints the whole thing...
Geithner's job seems to be slagging off China too. It is an infantile policy. The only effect it could possibly have is to annoy China, and then what? These hollow voices are just an attempt to distract from the depression that is upon America, and put the blame on someone else. It's schoolboy politics.
this post shows an intense lack of understanding and knowledge about the situation. For one thing, the bad guy is the government, not the people - a communist regime that clamps control over its economy, people and all other things, and is the world's largest manipulator, a bastion of intellectual property theft, currency manipulator and many other things. There is no free trade with China. Countries open their markets, and they take advantage. Would love for Europe, North America and others to slap 100% tariffs on Chinese imports until they cry uncle and trade like most others - fair trade.
USA is currency war's "tomb maker": China economist BEIJING (Reuters) â The United States fired the first shot in the currency war and the rest of the world must be on guard for its deliberate strategy to devalue the dollar, a Chinese economist said in an official newspaper on Thursday. In a front-page commentary in the overseas edition of the People's Daily, Li Xiangyang described the United States as the conflict's "first maker of tomb figures," a Chinese idiom that means someone who creates a bad precedent. Li, head of the Asia department at the Chinese Academy of Social Sciences, a top government think tank, said continued intervention in currency markets by developed economies would deal a blow to global economic recovery. Chinese leaders have warned before that loose monetary policies in the United States pose a serious challenge for emerging markets, but rarely in such strident language, a window onto the rising anger in Beijing. "The dollar's depreciation may appear to be market-driven. In reality, it is a depreciation colored by very strong, deliberate actions," Li said in the paper, which serves as the chief mouthpiece of China's ruling Complete article-: http://news.yahoo.com/s/nm/20101014/bs_nm/us_china_usa_currency_war