Don’t Just Do Something, Stand There
Derek Scissors /
The Department of the Treasury has again declined to label China a currency manipulator. This will ruffle some feathers on the Congress, labor groups, certain industries, and some plain ol’ regular Americans. Those with ruffled feathers can make good points but Treasury is still right to have done nothing.
There are definitely weaknesses in the justification given for doing nothing. Treasury cites the PRC’s stimulus package as helping the situation when the stimulus is just more of what China has been doing the past six years to create its gigantic trade surplus. (more…)