Chinese Currency

There has been a lot written recently about the Chinese manipulation of its currency. It should be the Chinese that are mad about a weak currency, not Americans. Here's why:

1. A cheap yuan and expensive dollar makes consumer goods made in China cheaper for all of us. That is a great thing. That means more income available to buy more cars (maybe even ones made in this country), more life saving drugs, and attend more leisure activities like movies.

2. The only way the Chinese can keep their currency cheap is to flood the market with yuan and buy dollars. This makes goods for Chinese consumers very expensive. That's why is hard for Chinese to buy US-made products and it is an impediment for them to increase their standard of living.

3. If the Chinese have a strong relative currency, it means they can go out and buy even more resources. They are aggressive today, can you imagine what they would be buying if they had the world's strongest currency? That has been a luxury that we have enjoyed in the US for decades and the main reason energy is so cheap in this country.

So let the Chinese do whatever they like with their currency. I hope they keep it weak so all my "Made In China" crap remains cheap.