China & U.S. Play Chicken: Currency Manipulation

China is manipulating its currency, proclaims incoming Treasury Secretary Geithner. Talking about manipulation is helpful only if ones intent is to impress a local and insult a foreign audience. More productive may be plain talk - the U.S. and China could issue a joint statement along the lines of: China and the U.S. agree that both will act in their respective self-interest in setting exchange rate policy.

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[Phead128]

The Fed just decided to print $600 billion dollars through "Quantitive Easing" or the American way of currency manipulation.

US manipulates currency

China manipulates currency

Japan manipulates currency

EVERYONE DOES IT!

[Styckx8D]

@halim181276 Everyone says the US can do what it wants, I believe that the US has become a slave to maintaining its kingdom. It is printing money to pay off its debt, by devaluing the dollar, it makes it easier to pay off its debt

Moreover, because the USD runs the world economy, it is too big to fail. The US is able to make all of its ridiculous pollicies solely because denying the US would be bad for the counties and the US. But because we keep trying to patch up rather than fix,itgetsworse

[halim181276]

The Fed is also manipulating to lower the USD, by monetary easing.

This monetary easing, is simply printing USD to buy their own debt. It is exactly the same with currency intervention, which is if you pour USD to the market, then USD will plunge.

So, in american's mind, they can do anything they want, but other countries must listen to them. In fact, they are just trying to move their crisis to China and other countries.

[0ct0ct09]

Here is a quote from USEconomy.``When the Fed does Quantitative Easing it is printing money. This causes the dollar to lose value and is inflationary, which in turn causes the Yuan to rise in value. Therefore, we manipulate the currency as much as the Chinese, making us hypocrites.``

[liebstandarteadolf]

@FulinYu No, that's not my intention. I was trying to encourage you to incorporate some practicality into your theory. Little did you realise that in the real world, markets always fail. Perfect markets don't exist. Yet, the world goes on.

[FulinYu]

@liebstandarteadolf China is the number one country and currency on earth.

Europe Canada and US are stupid and bad. --Is that what you want me to say?

[liebstandarteadolf]

@FulinYu You've been fed too much neo-classical economic theory. And even by neo-classical standard, your statement only makes half a sense.

[FulinYu]

@liebstandarteadolf You need to understand how countries "control" their currency. You can't deny the laws of supply and demand, and the Yuan doesn't maintain its value simply because the Chinese government decrees it to be so. -- If actual value is different from the "propped up" value of the Yuan, a market fall will happen. It's just basic econimics - sorry, it's true.

[liebstandarteadolf]

@FulinYu Nope, it will be sustained for as long as their is confidence in the Chinese currency. This confidence is here to stay for China's huge foreign currency reserve.

[3muzic]

Greed........greed..greed. this sums very well for US