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Originally posted by Bad_Rich_Chic
Well, you implied the Chinese G was somehow doing something to suppress it, when it is in fact the US G's fiscal policy that is having a secondary effect of suppressing it, given the existence of the peg.
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Of course it's the Chinese government doing so.
Do you think anyone other than the Chinese government could make the decision to keep their currency pegged to the dollar, or to let it float?
And do you think the policy would be any different if it wasn't having the effect of bolstering Chinese exports to the US by making them cheaper?
See my Q to Hank -- if their currency floated, but they subsidized exports and taxed imports, would you consider that a good thing? Even if the net effect were the same?
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Well, I think they're wrong. I'm not quick to trust the thinking of a centralized communist state on market issues.
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Perhaps you should check the growth rate of the Chinese economy over the last decade years before being so dismissive.
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