Who Is the Worse Currency Manipulator?

The U.S. keeps bashing China for manipulating their currency. And yet, who is the worse currency manipulator?

The U.S. lowered the value of its currency by 12.5% from March of 2009 to August of 2009. Its value is still waning.

G. Edward Griffin argues in his book titled “the Creature of Jekyll Island” that the U.S. Fed wants the weakest USD possible because the U.S. can’t pay its debt in present dollars.

The Chinese have raised their value of its currency 25% over the last five years. Yet Krugman and Bernake contend that the Yuan is undervalued compared to dollar.

As I pointed out on numerous occasions, China knows what has happened to Japan after the Plaza Accord. They don’t seem to let that happen to China.

The U.S. also continues to be critical of China for trade imbalance. Why does the U.S. have a trade imbalance with China to begin with. Mainly because the U.S. manufacturing firms have moved their operations to China. The U.S. firms have been given tax benefits for moving their operations out of the U.S. China is only one of many exporters to the U.S., although they are the largest. The U.S. has hollowed out its industrial base by policy choice.

The U.S. policy failure has mattered.