Moon Kil Woong
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Making Sense of China's Future [View article]
Of course China can prolong this as long as possible by keeping their currency down to mask Chinese citizens affluence and boost their reserves. However, it does them no service because sooner or later they need to move to higher value added business and start educating their population for that now. Each person at a dead end manufacturing job will become a problem in the future for China.
It is best that China lets their currency appreciates and realizes that their manufacturing business will eventually migrate to Vietnam, etc. Their recent steps are good if not a bit too late. The economic slowing it causes now helps prevent an even higher level of pain in the future. In the end economists should try to moderate the economy, not make it run at unsustainable levels. I wish the US Federal Reserve would think about doing that in the future instead of electing people like Greenspan and Bernanke which allows the economy to blow a gasket as they try to make the engine run as hard as it can constantly.