"If the administration fails to act on this issue it will hold back our economic recovery and hurt the ability of American small businesses and manufacturers to increase their production, keep their doors open, and create jobs," Michaud said in a statement on his Web site.
Okay, I only have got one opinion on this when I first saw this. I'm not going to talk about China being a currency manipulator, helping its own exporters in order to boost its trade surplus and end up with an astonishing 8% annual growth and stuff.
Conversely, the first thing that came to my mind is that the United States feels threatened. China is going to overtake Japan any time soon and the next one on the chopping board will be the United States and they are threatened by that fact.
As far as I'm concerned, China is not really impacted by the financial crisis or has already recovered even if it was impinged by it. On the other hand, the United States is not recovering yet for it is still fraught with mortgage issues, all-time high unemployment rate, debts, loans and insidious social problems like labour's employability and stuff.
Thus, the United States feel that if they do not stop China (for they are on a roll), the United States will be overtaken faster than they can ever imagine.
All in all, it boils down to the United States being insecured about themselves in terms of sustaining its position as the Number 1 economy is the entire world. Nonetheless, I am going to agree with the United States that China is flagrantly manipulating its currencies by undervaluing it.
Credits -marketwatch, -scienceblogs, -wallpaper-s
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