Mnuchin's logic, as far as we can tell, is that China manipulated their currency because their central bank didn't adequately intervene in foreign exchange markets to prop up the yuan.
Conversely, direct intervention into markets, to maintain a centrally planned price that's acceptable to Mnuchin, is not currency manipulation.
On Tuesday, to restore confidence in the yuan, and refute accusations of being a malevolent currency manipulator, the People's Bank of China announced a plan to price fix the yuan.
Central bankers inflate their currencies to keep asset prices and corporate operations, which are dependent on cheap credit, above water.
Without perpetual currency debasement, the debt structure will break downand assets and businesses will be liquidated for pennies on the dollar.
The dirty deed of currency debasement is a delicate endeavor.
The point is all central banks manipulate their currencies in an attempt to preserve a certain realm of acceptability.
https://www.zerohedge.com/news/2019-08-10/getting-special-state-ugly
Conversely, direct intervention into markets, to maintain a centrally planned price that's acceptable to Mnuchin, is not currency manipulation.
On Tuesday, to restore confidence in the yuan, and refute accusations of being a malevolent currency manipulator, the People's Bank of China announced a plan to price fix the yuan.
Central bankers inflate their currencies to keep asset prices and corporate operations, which are dependent on cheap credit, above water.
Without perpetual currency debasement, the debt structure will break downand assets and businesses will be liquidated for pennies on the dollar.
The dirty deed of currency debasement is a delicate endeavor.
The point is all central banks manipulate their currencies in an attempt to preserve a certain realm of acceptability.
https://www.zerohedge.com/news/2019-08-10/getting-special-state-ugly
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