Renminbi currency war

[wildww]

We've all heard the flap from Europe and the US about the low Renminbi costing jobs in the west. Look at the exchange rates however. The yuan has risen by 6.5% pace in the year-to-date against the US, but it has fallen at an annualized rate of 10% against the euro so far this year. Hmmm what does that mean? The US trade deficit, uncertainty, middle east blah blah. I think the US is purposefully keeping the USD low to keep jobs at home and even a return of some of those manufacturing jobs that China has been sucking up from everyone else. The big news now is the credit crisis in the US spilling all over and forcing the US to cut rates. Lower rates means lower currency means to expensive to import means I should just but an old factory here in the US and sell at home. Is it an excuse? Sure UBS just received $10 Bill from the Singapore monetary authority and an anonymous middle east investor. It keeps the negative news about the US fresh. Excuse me but doesn't UBS or any other multinational financial firm have any month-end reporting to senior management (let alone end of day)? Don't they then report their numbers every 90 days to the their faithful shareholders? Seems to me that all the damage from this problem is known and that its the news "dejour" to scare everyone out of the US. Unfortunately for Europe they can't get it together (and I'm not sure why). There has been a changing of the guard in the big three UK, France and Germany but who wants to buy any of there goods? I dont even want to vacation there. I can easily go to Thailand and have twice the value and three times the service.

[descorpio]

The currency war is not only in china but also in most of the countries worldwide. The depreciation in US dollar rate boost the import while the exporters is not okay with this. I think the US subprime crisis and the credit crisis needs to be settled first so that the overall global market could be stable.