The Treasury’s semi-annual forex report says no major trade partners are manipulating their currencies. China escaped once again though its may not have such a warm relationship with the incoming administration, if campaign rhetoric is to be believed. Thankfully, it is not.
Incoming Treasury Secretary Geithner, as head of the NY Fed, clearly understands the paramount importance of maintaining a cordial relationship with China as we need their excess savings to cover our current account deficit and China needs our markets to consume its imports and as a place to park its savings.
