The Politics Behind the RMB: Intro

Monday, March 20, 2006 8:44
Posted in category The Big Picture

If you were to believe the messages of the popular media and the current U.S. administration, you would believe that a revaluation of the RMB is the primary cause for the loss of jobs in the United States. That the RMB us up to 40% undervalued and that if they would revalue to “fair market value”, it would relieve the flow of container hitting the Long Beach docks and it would bring jobs back to Akron, Ohio.But the fact is that the real value of the RMB revaluation is only political, and that it will do little to serve the average consumer in the United States.The RMB is little more than a politically charged lightening rod and that those pushing for revaluation are only doing so as they are not interested in serving their constituents if it means losing votes.

Over the next several weeks, we will look at various RMB related issues and events. Feel free to post your thoughts as well.

 

 

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