U.S. to Delay Chinese Currency Report

[UpInArms]

Source: New York Times

The Obama administration said Saturday that it would delay a decision on whether to declare China a currency manipulator, but it vowed to press Chinese leaders on the politically charged issue of its currency valuation during a series of meetings through June.

The Treasury’s action seemed intended to send a reassuring message both to China and to Congress. It signaled to China that the administration prefers to resolve the dispute diplomatically, rather than force a showdown, but also pressed the case for a change in China’s policy, a position advocated by many United States lawmakers in both parties.

“China’s inflexible exchange rate has made it difficult for other emerging market economies to let their currencies appreciate,” Treasury Secretary Timothy F. Geithner said in a statement. “A move by China to a more market-oriented exchange rate will make an essential contribution to global rebalancing.”

In his statement, Mr. Geithner said he had decided to delay the semiannual exchange rate report to Congress, which was to be due on April 15 and which many members of Congress had hoped would officially cite China as a currency manipulator.

But he made it clear that the United States believed that China has artificially undervalued its currency, the renminbi, which is also called the yuan. China had allowed the renminbi to appreciate from 2005 to 2008, but then resumed the practice of pegging its currency to a nearly fixed rate to bolster its export-oriented economy during the financial crisis.

Read more: http://www.nytimes.com/2010/04/04/business/04yuan.html?partner=rss&emc=rss

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color me - not surprised

[Psephos]

1. A true profile in courage. n/t

[robcon]

2. Cowardice: turning our back on allies UK and Israel.

Kowtowing to China.

[mbperrin]

3. Last I looked, China was a sovereign country, free to do with their

currency as they like. I don't recall agonizing moral debates in OUR Congress as to ways to make Americans poorer and other countries richer.

Perhaps I missed that heartrending display of humanity, but look at this way: whoever is asking a favor is the weak one, and whoever they're asking is the strong one. Wanna know where we stand now?

[truedelphi]

4. And I don't remember any Secretary of Treasury chastising

Billionaires like Soros to stop destroying entire nations' economies for the sake of their investment funds.

The damage that man did in the last twenty years when he was actively running around pulling the string of the world's monetary supply was immense.

And when Geithner was sent by the IMF to Japan to help the Japanese shore things up, there were two economic models he needed to choose from.

Little Timmy managed to choose the wrong one, and so Japan endured a long lasting L Shaped curve.

But hey, just because Geithner's resume stinks and he couldn't even remember to pay his US Federal taxes - those factors shouldn't stop an Obama Family Friend from occupying a high office in Treasury, should it?

[mbperrin]

6. Hmm, you're right, I don't recall any investor being called to heel,

and I do remember Timmeh couldn't 'member to pay his taxes, and I do remember that he went to Japan and fucked things up.

Weird, huh?

Makes my cynical little dad look more right when he said, "It's a government of THOSE people, by THOSE people, and for THOSE people."

He worked as a mechanic in the 50s for a Lincoln dealer, and he was amazed at how many of the local gentry would borrow a dime from one of the shop hands to use the phone and never pay it back.

[truthisfreedom]

5. WTF else is he supposed to do? Ruin relations with China? Or attempt to negotiate?

He's making a business decision based on the best interests of the US.