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Would 6RMB/ USD Be A Good Thing?: Part 1

Other than product safety, there have only been a few topics of discussions surrounding China’s relationship with the world that have made it longer than the discussion of the RMB. It is a topic I have covered several times in previous posts, and it is a topic that we are currently fielding votes on (that is your hint to vote now).

The RMB in my view is what I would call a political lightening rod. It is not as hot, nor does it cut as close to home as this summer’s product recalls… but various politicians have done an excellent job of tying the RMB to trade.. and trade to jobs.. and that has hit a bone with many who feel that China has unfairly valued its RMB.

For this post though, I am not going to look at whether or not it is unfairly valued, nor will I look into the issues surrounding the politics of the RMB. Instead, I am going to focus on the what it… as in what if the RMB went from the current 7.45RMB = 1USD to ….say 6RMB = 1 USD (a nearly 20% revaluation). Now I know.. that is only half of what the politicians in Washington have said needs to happen, but 6 RMB is a start, and you have to start somewhere.