Problem:
The Wall Street Journal, Monday, June 21, Front Page. China Eases Currency Peg.
Why are the Group of 20 putting such heavy pressure on China's government to reevaluate their yuan? Revaluation would boost China's spending power and ease the induced competitive/comparative advantage strain with other nations caused by its long reliance on cheap exports. China states they will slowly drop the peg to the US dollar with only a modest appreciation of their currency. The People's Bank of China is courting both political and economic affairs. If China tinkers with the driver of its export-led growth will it further jeopardize an already deeply troubled global market? Why are they reluctant and withholding an increased revaluation of their money? I think they like holding our debt as they enjoy our interest payments. Please advise.