China and The United States

I do not know why we are giving so much importance to China’s illegitimate moves on the currency front. Economics and any other stream of knowledge do not talk about absolute actions because they are not simply of any use. For instance, if there would be only one country in this world its decisions would not affect the others, simply because there is no other country. It is the relative significance of actions that matters in any realm of knowledge and Economics is no exception. No single country in this World can dictate the terms to others and exploit Economics to feed its ambitions, without their consent. And, i’am sure it is not possible. I can not believe an economy like States that has almost ruled the modern World, most of its part, is so frightened by China. China’s history is full is currency redenomination to balance inflation and there is no doubt that it has resorted heavily to it, throughout its history. The Chinese currency manipulation can be, simply, offset by retaliatory adjustments in exchange–rates, and affecting money supply and inflation is not just the single way of doing it. It can easily be done on the paper; means America can deliberately depreciate its currency without affecting its credibility, too much. It will certainly augment it productivity and competitiveness, and the ones that are holding its currency in the expectations of profit, may not profit from a stronger currency, but the quantity they will be getting will be sufficient, at least we can expect that. But, i’am nearly sure it will emerge as a stronger currency, later too, if we rely on economic fundamentals, that follow a process. But, if not controlled another 2008 is not too far. This time i expect a food-grain market kind of control for the money-market.