It looks like incoming Administration official Tim Geithner will continue the long line of clueless protectionist currency policy at the Treasury Department. In written responses to the Senate Finance Committee, Geithner asserted what even the disastrous Snow/Paulson Treasury’s wouldn’t say officially: that China is “manipulating” its currency, the yuan.
Mere journalist James Fallows understands the issue much better than technocrat Geithner:
to boil it down to the bald assertion that “China is manipulating its currency” ignores, vulgarizes, and misconstrues a lot more than it clarifies.
Gold promptly rocketed $40 today, as the American weak-dollar policy resumes.
