Treasury Says China Not Violating Currency Law

[mumon]

http://www.nytimes.com/aponline/national/AP-Snow-Currency.html?hp

WASHINGTON (AP) -- The Bush administration said Thursday that China is not violating a U.S. law against currency manipulation to gain unfair trade advantages. The finding came despite complaints from U.S. manufacturers that China's actions have played a major role in the loss of 2.7 million manufacturing jobs over the past three years.

...

The administration in recent months has stepped up its pressure on China over the currency issue in an effort to demonstrate concerns about the massive job losses that have occurred in American manufacturing over the past three years.



The fundamentals are still really bad in the US- if the yuan rises, interest rates rise, prices of pretty much everything rise, and recession kicks in once again.

On edit: this may be, despite the gee-whiz "economic turnaround," the Dow and markets are really lackluster today.

[MiddleRiverRefugee]

1. What if they upped and decided to peg to the euro?

Not that they would, but....just curious.

[mumon]

2. It could happen, I suppose...

But they've no reason to do so until they become the "OPEC" of manufacturing. At that point, we're basically screwed..no wait, we're already screwed.