Peg is dead as China vows yuan flexibility

[sound]

http://www.reuters.com/article/idUSTRE65I11B20100619

[mark_l_watson]

I also posted this article because I was interested in other peoples take on this. Good for us in the USA? Personally, I don't think so because I see this as another step towards the dollar no longer beng the standard reserve currency. It would be great if there was an uptick in manufacturing here, but on balance, this does not look good to me.

[pasbesoin → mark_l_watson]

I drafted a longer response, but to keep it brief:

Production and markets are sufficiently captive. Time to tighten the screws.

(Possibly related: To what extend has the recent labor unrest been tolerated if not actively encouraged?)