Sunday, May 29, 2011

Refraining from labeling China a 'currency manipulator'

I was intrigued by Kerney's post yesterday, so I did a little extra digging. Googleing "labeling currency manipulators" found me a ton of article, all of which said essentially the same thing: that the US (specifically the Treasury Secretary, Tim Geihtner) refrains from labeling China a 'currency manipulator' because it would result in sanctions or trade retaliation. Just thought, I'd share the article.
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5 comments:

  1. Chris DendrinosMay 30, 2011 at 7:09 AM

    Hmmm, is there really a difference between someone actually saying it and everyone knowing that it is true.

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  2. EMeisheMay 30, 2011 at 10:44 AM

    Good question Chris. I think in this case not saying it indicates the U.S's bargaining position. If the U.S gets to a point where we could re sanction or retaliate strongly enough (tradewise) then we would more actively call out China about their currency strategy. It points out that we don't have the cards to do much about it right now and shows how the balance of economic influence is shifting.

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  3. Dane CareyMay 30, 2011 at 5:45 PM

    I see Cold War II brewing...holla!

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  4. Andrew ManorMay 30, 2011 at 6:18 PM

    Pretty interesting topic here. I was confused about what exactly is "currency manipulation" so here is a useful article I found that breaks it down nicely in case someone else didn't really understand this term:

    http://money.cnn.com/2010/11/10/news/economy/what_is_currency_manipulation/index.htm

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  5. Becky McLaughlinMay 30, 2011 at 6:32 PM

    That's a good point. Calling out China like that would probably cause issues that the US cannot afford right now.

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