Falling Yuan Latest Failure of Obama's Trade Policy

Throughout 2011, at President Obama's urging, the People's Bank of China let the Chinese yuan rise slightly versus the dollar.  It didn't raise the yuan enough to bring U.S. Chinese trade toward balance, but at least China was appearing to move in the right direction. But the rise in the yuan stopped on January 1.  Since March 1, China has actually been reducing the price at which the Chinese yuan is exchanged for the American dollar, as shown in the graph below: This course-reversal by the Chinese government marks the complete and utter failure of President Obama's trade policy, which has already been reeling from one mistake after another. Solyndra and several of the other alternative-energy producers that President Obama's bureaucrats chose to subsidize are going bankrupt.  Obama's car of the future, the Chevy Volt, has failed to sell, and now GM is giving electric car and battery technology to China.  The administration's only glimmer of success was that it...(Read Full Article)

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