On his blog (via the Christian Science Monitor), Robert Reich takes a more pessimistic view of the recent announcement that China is going to raise it’s currency rates:
The stock market is euphoric over China’s apparent decision to allow its currency to rise against the dollar.
Watch your wallets.
China isn’t really changing anything. It’s only doing the minimum to prevent Congress from listing China as a currency manipulator, leading to a squeeze on Chinese imports.
Over time – and I’m talking about months if not years – China will raise its currency to where it was before the global meltdown in 2008. Big deal.
Even then, a stronger yuan won’t generate lots of new jobs in the United States.
