Shock, horror!!!
And here we go again.
The Chinese are buying up dollars to keep the value of the renminbi low. This has the effect of worsening the US trade deficit and causing “imbalances”, as the experts would have it. Another round of tariffs and angry rhetoric is threatened.
So, short of the Chinese allowing the renminbi to trade freely (an inevitability in the coming decade), the obvious answer for America would be to allow the dollar to fall further, decreasing the deficit, expanding the export industry, and adding jobs, jobs, jobs.
But that’s not what we’re saying, even though that’s precisely what we want to happen.
Gorilla says: “Weak dollars are us! Reduce the deficit in US Column A, increase the value in Renmin Column B!”
