China Is Officially a Currency Manipulator
China has been a currency manipulator for years. Everyone knows it. China knows it. The U.S. knows it. Every economist in the world knows it. China has an enormous trade surplus with the world. Typically, when this happens, the value of that currency rises making its exports more expensive to other countries. This, in turn eventually reduces the amount of imports a country makes, thereby reducing the overall trade deficit. China, which requires its citizens to hold their savings in state run banks, uses the large amounts of currency it generates sending exports around the world to ensure that the value of the Yaun never gets above a certain amount. In turn, this both keeps its exports cheap, and prevents any closing of the trade gap between its trading partners. None of this is secret, or remotely new information Trump Calls Out China Currency Actions What is new, is that usually no one says it out loud, and no one ever actually makes it official by labeling China a currency manipulator. So, what does it mean now that China has been officially labeled? Nothing. You see, since China has been doing this forever, and the other countries have known about …
