As American legislators are pushing for China to raise the value of its currency, the National Inflation Association (NIA) has criticized this policy, citing America’s weak bargaining position.
Administration officials, including Treasury Secretary Timothy Geithner, have been calling on China to make its yuan currency more flexible in an effort to help trim United States trade deficit with China and reduce the jobless rate, according to Reuters.
Moreover, pressure is building on the administration to name China a "currency manipulator" in a mid-April report, and lawmakers are threatening to impose tariffs on Chinese goods to counteract the effects of the country’s cheap currency, the news source further reported.
However, many economists disagree that the appreciation of the yuan would have this beneficial effect on the U.S. economy. NIA goes even further, stressing that it is China’s artificially low yuan that allows the U.S. to import cheap goods and Americans to live beyond their means.
"We should be kissing China’s feet and thanking them for allowing us to consume the goods they produce in return for a worthless piece of paper that we print," the organization’s representatives stated.
"Instead, we are blaming them for the problems that our politicians created," they added.