[lbo-talk] yuan dollar

[bhandari at berkeley.edu]

Ok I am totally perplexed as to what Paulson's game is. He is not trying
to revalue yuan holdings of US corporations--Doug has made his case; big
US business, mortgage holders and consumers would at the least not benefit
from sharper yuan appreciation--Marvin has made the case. And why is
Congress (across party lines) pressuring Paulson to put pressure on
Chinese authorities? I can't see how the job gain from yuan appreciation
would not be overwhelmed by the losses to the US economy. Perhaps US
multinationals operating elsewhere would stand to benefit; perhaps US
companies  see the internal Chinese market as the biggest source of new
profit growth and think a yuan appreciation would add fuel to the fire. Or
perhaps Paulson is just talking smack? But there seems to be more to it
than that.
Totally confused.