OK, I'll grant you that. If Krugman is referring to the Chinese govt as the "bad guy" rather than the people, then that is much better and less tinged with "blame the foreigner".
20 yr. ago, one US dollar = 9 yuan 15 yr. ago, one US dollar = 8.7 yuan 10 yr. ago, one US dollar = 8 yuan 5 yr ago, one US dollar = 7 yuan now, one US dollar = 6.7 yuan draw your own conclusion who is trying to start the currency war.
China Sees 6.1% Gain in Foreign Direct Investment Foreign direct investment in China increased at a faster pace in September, underscoring confidence in the outlook for the fastest-growing major economy and adding to pressures on the nationâs exchange rate. Investment rose 6.1 percent from a year earlier to $8.4 billion after a 1.4 percent gain in August, the Ministry of Commerce said in a statement in Beijing today. Investment in the first nine months of 2010 climbed 16.6 percent to $74.3 billion. Companies from clothing retailer Esprit Holdings Ltd. to carmaker Renault SA are seeking to expand in China amid elevated U.S. unemployment and European budget cuts. The flood of money into China, including from speculative cash, forced the central bank to buy foreign currency and avert faster gains in the yuan, helping spur a record jump in reserves last quarter. http://www.bloomberg.com/news/2010-...irect-investment-as-growth-lures-renault.html
U.S. trade deficit with China balloons to new record WASHINGTON (AFP) â The US trade deficit with China ballooned to a new record in August, sharply widening the overall trade gap, according to data that added fuel to growing American furor over China's currency. The Commerce Department said the August trade deficit rose nearly nine percent from July to 46.3 billion dollars. That was far worse than economists predictions of a 44.5 billion dollar gap. Despite exports of goods and services edging up to a two-year high, imports jumped even higher. "Our exports barely budged but we bought a lot more of just about everything including food, consumer goods, vehicles, capital goods and industrial supplies," said Joel Naroff of Naroff Economic Advisors. Imports increased 2.1 percent from July, to 200.2 billion dollars, while exports edged up only 0.2 percent, to 153.9 billion dollars. The August trade deficit was the second biggest since October 2008 when the global financial crisis accelerated, and confirmed a trend of widening gaps that began in mid-June 2009. The politically sensitive gap with China expanded eight percent, to 28.0 billion dollars, wiping out the previous record of 27.9 billion dollars set in October 2008. The United States has long criticized China's currency policy, accusing Beijing of keeping the yuan undervalued to gain an unfair trade advantage. http://news.yahoo.com/s/afp/useconomytrade