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Looking for a scapegoat

(China Daily)
Updated: 2010-04-12 08:16

The US delays labeling China as a currency manipulator for its own interest, says an article on news.xinhuanet.com. Excerpts:

The US has delayed the publication of the April 15 report on international economic and exchange rate policies of its major trading partners, as stated by Treasury Secretary Timothy Geithner. A series of high-level meetings, including the Strategic and Economic Dialogue with China in May, are expected.

Labeling China a currency manipulator would lead to disastrous consequences for the US, considering the support it needs from China in handling international issues. So the delayed report might be for the sake of its own benefit.

The truth is, China's steadily rising currency and its strong fiscal and monetary response to the world economic crisis have contributed to global recovery. The clamor for a currency war has its roots not in China's currency manipulation, but in America's domestic troubles, which have been aggravated by high unemployment, excessive consumption and low savings.

But Washington refuses to reflect on its own problems; and, as usual, it adopts the trick of seeking for the scapegoat outside. The delay of the upcoming report is expected to win more time for its policy adjustment.

(China Daily 04/12/2010 page10)