More RMB Value Bloviating from US Politicians

2009-10-28

Does this make any sense at all?

Rep. Tim Ryan (D-Ohio) and other members of Congress are pressing the administration to take a firmer stand with China on its currency policies.

Ryan’s legislation punishing China for devaluing its currency has gained little momentum in this Congress, even though criticism of China’s currency policy has increased in recent weeks.

China pegs the value of its currency to the dollar, meaning both have lost value during the dollar’s drop over the past several months.

This has led to new charges that China’s policy is undermining the world economy. Ryan worries about cheap imports from China, driven down by the value of China’s currency. (The Hill)

Um, I understand why Asian exporting countries, the Europeans, and a lot of other nations are pissed off that China's already-low currency is following the dollar lower.

But for US politicians to complain about this same dynamic is a bit weird. Complain about the entire quasi-fixed system, perhaps, but not the recent fluctuations.

US exports are going to benefit from the dollar's drop as well . . .

Tags: China Business & Economy, U.S.-China Relations