it won't be a mistake.
to claim you are for the peg, is the same as saying the peg should be even lower. if the peg is good for the US at its current level, then it would be better if china depreciated its currency even further, right? I mean, if the peg is good, then a lower one would be better. that pair of Dockers coming into the US at $4.75, why can't it come in at $3?
the problem with people who see the peg as the ticket to cheaper US consumer goods - don't see the flipside (like I do at work) - the creation of an aritificially low cost zone with an essentially infinite labor supply, into which US industry is investing, unbolting plant and equipment from factories in the US ans sending it over to China along with those jobs.
we have essentially made China an "enterprise zone" for US industry.
That is a good argument. Let me see if I can find a flaw in it....
Maybe if they set the peg at 0 dollars to the yuan.... That's lower, right??
So they'd be giving their stuff to us for free.
Why is that bad?