At this point I guess we'll never know. Since moving from a strict peg to a managed float, the yuan has gained 25%. This doesn't mean that criticism has ceased, though. His soon-to-be former boss certainly kept harping on the currency issue throughout the recent US election. As it so happens, the US Senate requires the Treasury to report on the currency practices of America's trading partners. Eight opportunities have come to "do something" about China. Eight opportunities have gone to "do something" about China. As is usual during election years, Treasury delayed the release of the report scheduled for October for after the elections. And we got exactly the same thing:
The deadlines for the currency report to be issued are April 15 and Oct. 15 each year. But the Obama administration announced in October [this year] that it would delay the fall report until after meetings of finance ministers in early November. That decision also delayed the report until after the November election...Not that the US will ever give up this issue:
But Sen. Charles Schumer, a longtime Democratic Party critic of China's trade policies, criticized it. "This report all but admits China's currency is being manipulated but stops short of saying so explicitly," Schumer said in a statement. "It's time for the Obama administration to rip off the Band-aid and force China to play by the same rules as all other nations."
Still, Treasury said the yuan remains significantly undervalued. It vowed to keep pressing Beijing to let the currency rise further to "level the playing field for American workers and businesses and support a strong, sustainable and balanced global economy."Just as Susan Rice is the archetypal Ugly American, Tim Geithner is the archetypal Damp Squib in British-speak.Tim Geithner, for what will probably be the last IPE Zone post on you in your current capacity, I dub thee pantywaist of globalization.
The U.S. trade deficit with China reached $29.1 billion in September. It is running 6.8 percent ahead of last year's record pace. It has long been the largest U.S. trade gap with any one country.