It appears that one of President Obama’s first concerns is “currency manipulation” by China – very interesting. The administrations view seems to be:
The US has long felt that China has artificially depressed the value of its currency to boost exports – to the detriment of US business – but the Bush administration always stopped short of formally declaring China a currency manipulator.
However, I would also note who in the US it benefits: The US consumer. When China devalues their own dollar, they are making exports more cheaply for the rest of the world – including the US.
I’m all for market pricing the in the face of good information – but lets not forget that US consumers have benefited from this action.