Some in Congress are leaning on China to raise the value of its currency — to stop linking it to the U.S. Dollar. They say this move will help stop U.S. job losses. But are Americans also ready to say goodbye to cheap stuff?
Yesterday a botched English translation of a Chinese news story about the fate of China’s currency made its way into the financial news, and cost some traders a lot of money. The frenzy the false news set off is a sign of how closely Beijing’s bankers are being watched as they consider breaking the link between their currency and the U.S. dollar.
It is not just traders who have an interest in this story. Ordinary people here in this country have a real stake in what China decides to do with its currency. And that is why politicians of all stripes have started a campaign to try and pressure Beijing to raise the value of its currency — hoping that will help stave off job losses here at home. But some warn such a move may hurt the economic future of both countries.
Guests:
Ted Fishman, author of China Inc. and contributing editor to Harper’s Magazine;Peter Morici, Professor at the Robert H. Smith School of Business at the University of Maryland;Mark Headley, president of Matthews International Capital Management.