In reference to China Joins Currency War With Surprise Devaluation, Biggest One-Day Move on Record reader Martin writes …

Hi Mish,

I don't fully understand from your latest post what is the significance of congress labeling China a currency manipulator? Does it matter? Also you say they shouldn't, aren't they obviously a manipulator?
Can you elaborate?

Thanks for all the great insights!
Martin

Significance

The significance of Congress labeling China a currency manipulator is the likelihood that president Obama would have to hike tariffs on a number of Chinese imports. This would likely result in a tit-for-tat response by China.

No one wins trade wars. Instead trade suffers.

Manipulators

No one should point fingers here. They are all guilty

Mike “Mish” Shedlock