I’m confused. The way I read this is that the Chinese bought our debt with money that isn’t really worth what was thought. So where does that leave everybody?
Give credit to W, he knew the ChiComs were artificially inflating the value of their currency, he just didn’t elaborate on how they were doing it. He made a lot of noise insisting that they allow the Yuan to float, but was pooh-poohed by the World’s leftists.
Bush Aides Struggling With Yuan
By EDMUND L. ANDREWS
Published: May 10, 2006
WASHINGTON, May 8 — After nearly three years of pushing China to let its currency float more freely, with only modest results, the Bush administration still appears reluctant to accuse China of manipulating its exchange rate.
excerpt from NYT...http://www.nytimes.com/2006/05/10/business/worldbusiness/10china.html
Here’s another...
Bush, US Senate jerk up pressure on yuan
(Agencies)
Updated: 2005-04-20 10:28
US President George W. Bush claimed on Tuesday that Chinese Government was considering taking an interim step toward easing yuan currency peg with the US dollar, according to a Reuter report.
An interim move could help ease Sino-US trade tensions, but Bush said the United States would keep the pressure on China to “eventually” let markets set the value of the yuan.
excerpt from...China Daily http://www.chinadaily.com.cn/english/doc/2005-04/20/content_435862.htm
This is NOT new, it’s just now getting some traction.