Fool's Mountain: Blogging for China

Officials from both China and the U.S. have lauded Obama’s recent trip to China as a great success.  While some have criticized the trip for producing little in terms of specifics, one should not casually dismiss the achievements actually made (see U.S.-China Joint Statement). In so many ways, the relationship between U.S. and China has never been closer.

Yet despite the goodwill generated by the trip, there is one sharp difference that festers between the two – and that is the value of the Yuan.  Many in America feel that the Yuan is not only undervalued, but has created a huge trade deficit, setting in motion the current global financial crisis and threatening to prolong the current U.S. recession. Continue reading »