Wednesday, May 10, 2006

Makes sense to me...

WASHINGTON - The Bush administration on Wednesday announced it would not brand China as a country that was manipulating its currency to gain unfair trade advantages.
Huh? What exactly are they doing, then?


Blogger Snow Fort said...

I watched some of the commentary on CSPAN- the Under Sec of State's testimony made good sense, actually. It said that

While China was indeed manipulating US currency to some extend through ownership of US debt there is not much to worry about. Basically, China is so heavily invested the US dollar that a collapse of the dollar would hurt China's economy so much that they would avoid it at (almost) all cost. Their ability to trade and work in a global market is dependent on a strong dollar, oddly. The relationship is a complex one and is, unfortunately, heavily influenced by ex lacrosse playing prep school boys who assume they are underpaid for what is actually guesswork.

1:57 PM  

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