[dilbert80]

What could this mean for the U.S. economy?

[Tarpaulin]

What do you think?

WE'RE DOOMED!

[Pearls Before Swine]

Historically, fiat currencies have had finite lifetimes.

[ScottM1968]

US Prices will go up but exports will go up slightly, too.

[NorCalRepub]

this is just BS..I heard some very good economists talking about how China aritficially undervalues the currency and cheating on trade......they are screwing with us with their currency and I hope that bill being introduced in Congress about this addresses it

[staytrue]

Higher import prices, higher inflation, higher interest rates, higher domestic wages for most people.

In the end, not much of a change in the standard of living, just higher prices and wages.

[monkeywrench]

They're going to unpeg from the dollar. It's what the administration has wanted them to do.

[pfony1]

Good! Maybe NOW they'll break the dollar/yuan "peg" and enter the REAL economy.

Won't the EU scream when Chinese purchases of the Euro makes the EU's exports even LESS competitive...

[hubbubhubbub]

The U.S. dollar has been deflating ever since the creation of the Federal Reserve (1913). We should consider ourselves lucky that the Chinese are just now discovering this fact.

[AdamSelene235]

[Ronaldus Magnus]

Woo hoo!!!

[traumer]

Time to Roll over Europe now....
Destroy their currency too !

[PilloryHillary]

How about a link to this story? Oh, by the way, welcome to FreeRepublic.com

[PilloryHillary]

Well, since you are not responding to questions....here is the link to the story:

http://www.forbes.com/business/feeds/ap/2005/01/26/ap1783904.html

[freddiedavis]

why don't they tie it to gold

[Brilliant]

This is another way of saying that they have lost faith in their own fixed exchange regime. By fixing the yaun against the dollar, they take a bath everytime the dollar goes down.

But they are between a rock and a hard spot. If they don't fix their currency against the dollar, it will be a whole lot harder for them to sell their stuff in the US.

[Alberta's Child]

I'm patting myself on the back right now for predicting this a couple of months ago.

This is not bad news for the U.S. at all. What the Chinese government is saying is that their policy of linking the yuan to the dollar is having some serious consequences. First and foremost, their currency has declined against other currencies for no reason whatsoever in economic terms -- except that the U.S. dollar has been falling.

[processing please hold]

China blinked.

Bush plays damned good poker.

[ichabod1]

ha ha ha ha ha ha ha ha ha. That will teach them that it isn't a good idea to peg your currency to the big dog's.

[Tench_Coxe]

"At a standing-room only session focusing on the world's fastest-growing economy, Fan Gang, director of the National Economic Research Institute at the China Reform Foundation, said the issue for China isn't whether to devalue the yuan but "to limit it from the U.S. dollar.""

Mmmmm. That probably means no more artificial peg.

[Nov3]

China has lost faith in the stability of the U.S. dollar and its first priority is to broaden the exchange rate for its currency from the dollar to a more flexible basket of currencies, a top Chinese economist said Wednesday at the World Economic Forum.

If they do there will be price pressure on their manufacturers trying to distribute in our market. If they lose our market. . . .