Quote:
Originally Posted by ba1025
China's currency is pegged to ours so a declining dollar does nothing to stem the bleeding from our major trade deficit partner.
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Not true any more in terms of the peg. The Chinese have a managed float, and the yuan has been steaily appreciating for a total of about 15% over the past 3 years. If you look at the numbers, our overall trade deficit has been closing, albeit slowly (however, don't forget to look at the capital financial account, which for a pure float country will tend to have the mirror effect).
