Push for stronger yuan does no good now: US expert
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Rein further pointed out that the biggest currency problem in the world right now "is not a weak yuan but a weak dollar".
A weak dollar is dangerous "because it means countries will be less likely to buy Treasury bills and finance America's recovery," Rein said.
"A weaker dollar won't help create more exports. It will just make things more expensive for Americans," because he said that foreign companies would turn to other low-cost labor markets like Vietnam.
In his article, Rein also urged the administration of President Barack Obama to focus on how to strengthen the dollar by paying down debts, instead of "wasting time" on the renminbi issue.
The U.S. deficit hit a record 1.42 trillion U.S. dollars in the 2009 fiscal year.
Coincidentally across the Atlantic Ocean, a business commentator from British renowned newspaper Daily Telegraph wrote an article on the Chinese currency, expressing a view similar to that of the U.S. expert. The article was headlined "It's time to stop beating China up over its currency" and posted last Wednesday on the website of the Daily Telegraph.
Jeremy Warner argued against the Western press which he said unites against China's approach to currency reform and showed much sympathy for the Chinese point of view.
Regarding the revaluation of the reminbi, Warner said it is perfectly reasonable for China to do it at its own pace. "Beijing dare not go faster to appreciate its currency because the internal demand is sharply growing."
"The West has enjoyed a free ride off the developing world for an awfully long time," he said, calling for rebalancing geo-political and economic power for the sake of the whole world and the next generation.
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