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China economists urge government to let currency rise – government may be listening

March 30, 2010

SHANGHAI/BEIJING (Reuters) – China should allow the yuan to resume its gradual appreciation, two new advisers to the central bank said on Tuesday, as Beijing faces intense U.S. pressure to let its currency rise.

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In a cover story, Caijing cited unidentified sources as saying that Beijing was studying the option of dropping the yuan’s peg as soon as next month.

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Offshore forward markets on Tuesday were pricing in an expected rise of 2.6 percent in the yuan over the next 12 months. A Reuters poll last week pointed to 3 percent appreciation in the coming year.

Some economists have warned that growing criticism from the West could make Beijing more averse politically to loosening its grip on the currency, though a recent Reuters poll showed policymakers are widely expected to allow some yuan appreciation anyway by the end of June as the economy continues to recover.

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Lifting the value of the yuan would ultimately benefit China’s own growth, by dampening inflationary pressures and making imports relatively cheaper, Huang argued.

(source)

The way I understand this situation this benefits everybody, mainly by increasing China’s demands for imports, but just as important, in my opinion, in the long run it will strengthen Americans manufacturing base by reducing artificially low priced imports from China.

-elsewhere-

Humans are too stupid to make a rational decision about climate change so we should do away with democracy. If humans are so stupid how are he and his compatriots able to understand climate change. I think what he meant is, “all the slack jawed yokels are too stupid to understand climate change so we need to think for them and reduce them to a drone like status.”

(h/t)

So who are the violent ones

Harry Reid supporters throw eggs at tea party buses and threaten violence against Andrew Breitbart

(h/t)

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