By Paul Kellogg
October 23, 2010 -- PolEconAnalysis -- In uncertain times, the headline was soothing: "Secretary Geithner vows not to devalue dollar".[1] United States Secretary of the Treasury Timothy Geithner was saying, in other words, that if there were to be "currency wars" -- competitive devaluations by major economies in attempts to gain trade advantage with their rivals -- the United States would not be to blame. Who, then, would be the villain? China, of course.
Earlier this year, Democratic Party congressman Tim Murphy sponsored a bill authorising the United States to impose duties on Chinese imports, made too inexpensive (according to Murphy and most other commentators) by an artificially devalued Chinese currency. "It's time to deliver a strong message to Beijing on behalf of American manufacturing: Congress will do whatever it takes to protect American jobs."[2]
