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Peter Schiff - The Truth Behind China's Currency Peg



November 20, 2009 – Comments (1)

During President Obama's high profile visit to China this week, the most frequently discussed, yet least understood, topic was how currency valuations are affecting the economic relationship between the United States and China. The focal problem is the Chinese government's policy of fixing the value of the renminbi against the U.S. dollar. While many correctly perceive that this 'peg' has contributed greatly to the current global imbalances, few fully comprehend the ramifications should that peg be discarded.

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1 Comments – Post Your Own

#1) On November 20, 2009 at 4:02 PM, russiangambit (28.67) wrote:

Many fail to realise that the comfortable US life style has been subsidised by chinese for at east last 10 years. While unpegging will make the US economy healthier and more balanced it will come at the significant cost in terms of how much things cost, which will translate into hardship for majority if the population. US is not prepared to deal with it. And while politicans love to talk about China currency, I would assume that China will not let yan appreacite in any significant way, otherwise they would'e been vert scared.

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