U.S. Treasury Department Labels China a Currency Manipulator

[Landslide Lyndon]

https://www.bloomberg.com/news/articles/2019-08-05/u-s-treasury-department-labels-china-a-currency-manipulator

The U.S. Treasury Department officially labeled China a currency manipulator after the country’s central bank allowed the yuan to fall below 7 per dollar in retaliation for new tariffs on its imports.

Under the designation, Treasury Secretary Steven Mnuchin “will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions,” the department said in a statement Monday.

Trump called the yuan’s plunge “currency manipulation” in a tweet earlier on Monday and indicated he’d like the Federal Reserve to counter the move.

[Person Man]

Only God knows how this end.

[OSR stands with Israel]

Good news

[GeorgiaModerate]

In response, stock market futures are plunging.  Looks like another rough day tomorrow.

[ProudModerate2]

Good news

Yes and no.
I agree that China should not be allowed to get away with intentional (and large scale) manipulation of their currency valuation.
But this could end-up having major negative economic repercussions to not only China and the US, but around the world. Significant changes in trade between the top two trading counties on the planet, will have huge global consequences.

[Absentee Voting Ghost of Ruin]

Let's see. Mr. Trump first promised (hahahaha) to label China a currency manipulator almost four years ago.

"On day one of a Trump administration, the US Treasury Department will designate China a currency manipulator," he wrote in a Wall Street Journal op-ed in 2015. In his Contract With the American Voter describing his plan for his first 100 days in office, he pledged: "I will direct the Secretary of the Treasury to label China a currency manipulator."

He was, of course, lying and publicly walked back that pledge months after taking his Oath of Office in bad faith. I wonder what could possibly have prompted another flip-flop?

Anyone who thinks this is anything but a desperate attempt to be seen "doing something" in response to a disastrous week is deluding themselves.

[Mr. Smith]

Huh? No kidding.

[Grassroots]

Good. About time.

[dead0man]

it's weird that he did this after they stopped manipulating their currency.  Has no President ever pointed this out before?

[PSOL]

The IMF just pointed out the contradictory motion. When the literal heart of the Breton-Woods system is disregarded, it’s just more evidence that things can never go back the way they were. The future is going to be interesting, to say the least.

[ProudModerate2]

The IMF just pointed out the contradictory motion. When the literal heart of the Breton-Woods system is disregarded, it’s just more evidence that things can never go back the way they were. The future is going to be interesting, to say the least.

Oh wow. So it says ...

The International Monetary Fund sees little evidence that China’s central bank has deliberately reduced the value of the nation’s currency — a position at odds with the Trump administration’s decision this week to accuse Beijing of manipulating the yuan.

Thus trump and his economic team were lying or exaggerating.

[Landslide Lyndon]

The IMF just pointed out the contradictory motion. When the literal heart of the Breton-Woods system is disregarded, it’s just more evidence that things can never go back the way they were. The future is going to be interesting, to say the least.

Oh wow. So it says ...

The International Monetary Fund sees little evidence that China’s central bank has deliberately reduced the value of the nation’s currency — a position at odds with the Trump administration’s decision this week to accuse Beijing of manipulating the yuan.

Thus trump and his economic team were lying or exaggerating.

Krugman has said repeatedly that while China was a currency manipulator ten years ago, they stopped being a long time ago.