Lok Sang Ho

Currency Manipulation, China vs. Hong Kong

Fact is: no country ever allows its currency to float freely. To have the currency float freely may not only be against its own interest, but also against others' interests. Fact is: capital flows are massive today and often play havoc on any currency you can name. Exchange rates setting is part of monetary policy although they cannot be determined independently of interest rates. Everybody accepts that a sovereign country should have its own monetary policy.

America to China: Stop Buying Our Dollars! And Another Thing: Please Buy Our Dollars!

Many observers are paranoid. They don't know exactly what they want.

What the world needs now is more trade. That means more imports and exports from and to each country. That means exports need to be profitable. Corner exchange rates that make exports unprofitable for any country are destructive of trade. The whole world should guard against that!

Geithner on Yuan: Misstep or Warning Shot?

Factories in China are closing in tens of thousands, and many migrant workers who used to work in these factories have lost their jobs and returned to their towns and villages. There is a popular blog in China that is advocating greater savings as a new lifestyle(as if the Chinese were not saving enough already!). Job insecurity will hurt China's consumption and will reduce imports. China has canceled orders or frozen further orders for planes from Boeing. I just do not see how a stronger yuan would benefit America.