To me, it is obvious that the Yuan must come up and the Chinese be forced farther up the value chain, thereby buying more American goods and services. The sooner it happens the better. If there is any political calculation in timing it is one of taclking this now rather than later. Bush is to be kauded for addressing the issue, and the same ankle bitters that where bemoaning the Yuan pag a year ago are now saying that it really does not matter. Of course, if Bush were to reverse himself on this we would see acres of print condeming this as short sighted.
The Chinese have been holding this out as a carrot in various negotiations, not the least of which are those over N. Korea, and I should say that it is becoming increasingly obvious that it was all just a con.
Forcing China to cat like the economy it is will force them to deal with a great many internal issues, and this will help us all in both the long and the short term
I don't disagree. I just think that we're making a bigger deal out of it than it deserves. Even if they've got it pegged 27% too low, which is what the article suggests is the most it could be, then it's not such a big deal. I'm willing to pay 27% less for my t-shirts and undies. I doubt that it will cost us too many jobs.
Frankly, I'd rather that they make textiles than missiles. The more butter they make, the better.