China will absolutely de-peg their currency. It is simply a matter of time. The result will be higher consumer prices in the US as we will no longer be able to export our inflation. Apparently, the Chinese central bank is giving signs that the de-pegging might occur sooner rather than later. Read more here.
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My thoughts and beliefs
Yep, it is worst than that check out my cite and all the research news articles posted on the right side. Basic economic warfare question.
rideri.blogspot.com
Rider I Anti-Economic Warfare
Basically we export jobs to an unfair competitor and we do not create any new jobs in the place of the ones we have allowed to be exported to an unfair competitor. Furthemore Communist econ war states peg low and will get the jobs then can control the world.
I think our exporting of jobs has more to do with the high level of regulation and taxes in this country. It's not just because they work for less. They work for less because they are less productive. However, I do admit that artificially valuing your currency creates distortions - price fixing always creates distortions.
I seriously doubt that the undervaluing of their currency even benefits China. It has helped US consumers much more as we can export our inflation for stuff (e.g. we give you our paper and you give us TVs). Meanwhile, China faces a real estate bubble and large inflation.
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