US must be more open on economic policies. I sincerely hope this CD opinion piece does not reflect the opinion of the powers that be. Below is a comment I have attempted to lodge on the article. We shall see if it makes an appearance on the website...
I'm not really sure this article has any relevance at all. It is ludicrous to suggest the G7 Group of Nations fixes exchange rate policies, especially as China itself will not allow its currency to float freely. Furthermore, China's US dollar assets are by far the largest in the world, allowing China to influence global currency markets considerably, should it so desire.
To suggest G7 is somehow collectively responsible for allowing the market to become jittery fundamentally misunderstands how the market works - there is little anyone could have done even if they were "secretly" colluding. The US problem lies within its banking sector and is not a product of state financial policy.
In truth, China is the "financial cowboy" - making off with its people's money by controlling the money supply. Every time an export is sold, the central bank siphons off the dollars as they re-enter China, keeping its people out of pocket to avoid the hyper-inflationary pressure that would stop the country's economic miracle in its tracks.
I have read your opinion, I hope you now freely print mine.
Admittedly, this is a bit of a rant, and on reflection a more reasonable comment would have a much higher chance of being accepted on the China Daily website's comments section. However, it is an opinion, and as such is just as valid as the view expressed by Mr Liu Junhong.
... and apparently CD agree with me!
There's an infinitely better informed explanation of what's going on by Gerard Baker here
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