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US, China Currency Rap Throwdown

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It’s the race to debase.

Professor Ben Bernanke and his FOMC allies, in a historic effort to revive the US economy, are printing dollars, which tends to weaken the greenback and goose exports. Of course, Dr. B is quick to point out that dollar weakness is an effect, not the intention, of quantitative easing.

Still, this hasn’t prevented the US government from at the very same time accusing the boys in Beijing of currency manipulation. In fact, on September 29, Congress green-lighted legislation permitting the US to seek trade sanctions against China and other nations for manipulating their currency to gain trade advantages.

The legislation struck some as intellectually dishonest, if not Example A in outright monetary chutzpah. “This is ironic since the biggest currency manipulator right now is the Federal Reserve,” said Dr. Ed Yardeni of Yardeni Research.

The following currency rap battle provides more background on this US-Sino throwdown, as well as a nice beat. (Hat tip: Marginal Revolution)
POSITION:  No positions in stocks mentioned.