Reply #9: No. You kinda jumped from one extreme to the other. [View All]

I am not even saying Geitner *should* do anything.

However to sit there and say
a) China should be allowed to fairly value their currency "when they feel like it"
AND AT THE SAME TIME
b) I am working for fair trade (when fair trade is impossible as long as China devalues their currency).

is the height of hypocrisy. Fair trade is impossible without FAIR TRADE of currency. It is a critical component. Essentially the Chinese govt has a massive defacto subsidy on every single thing produced in China for export. The worst part is this subsidy is paid directly by the prosperity of Chinese workers. So it really is a lose-lose. Lose for Chinese citizens and Lose for American manufacturing.

I mean the dichotomy is insane. People flip out when Goldman Sachs manipulates markets for profit.
The Chinese govt makes Goldman look like a two bit thug. Their manipulation is worth trillions (stolen from American companies & American workers).

There are things the US can legally do. We could put tariff on Chinese goods equal to value of difference between China artificial peg (8:1) and the true value of their currency (2:1). Of course China will protest this to the WTO but it at least brings this issue into the open. Pretending it isn't a issue is just stupid.