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.

Depression, PMI and China

The fact is that if China's exports fall apart, its imports will also fall apart. This is already proven by recent data. A China that sees exports plummeting is a China that no longer serves as an engine of growth for many other countries. That is something we need to be aware of as Americans put pressures on China to appreciate its currency.

Strong RMB, Yen Not Good for the World

Remember the Plaza Accord in 1985 in which joint pressure was put on the USD to depreciate against market forces?