Want to stop China from manipulating the yuan and the dollar? Bar it from buying treasuries, Mr. President:
http://dailytorch.com/2019/08/want-to-stop-china-from-manipulating-the-yuan-and-the-dollar-bar-it-from-buying-treasuries-mr-president/
Now that the U.S. Treasury has labeled China a currency manipulator, President Donald Trump should consider barring it from purchasing any more treasuries as a penalty. After all, China needs to keep buying treasuries to exert its trade advantage and keep the yuan weak to boost its exports. Without treasuries to fall back on, the yuan could appreciate vis a vis the dollar, even with the fixed exchange rate. That would give the tariffs, now 25 percent on $250 billion of Chinese goods, and 10 percent on the rest of the $300 billion of them, some real teeth. It would also create a very real penalty for currency manipulation, and serve as a deterrent to other countries that want to play games with the dollar. What do you think?
