60 Senators Sign Letter Protesting Japanese Currency Manipulation
Despite the 'support' of the G-20 and the self-deceiving belief that Japan is 'not' manipulating its currency; 60 US Senators appear confused. In a letter to Treasury Secretary Jack Lew and Trans-Pacific-Partnership Trade Rep Michael Froman, the Senators demand they "address one of the 21st century's most serious trade problems: foreign currency manipulation." In order to ensure any agreements meet the "high standards" that America's workers deserve, Lew and Froman are directed to include "strong and enforceable disciplines," for any currency manipulations. Cue Abe protestations at US policy...
As Richard Koo noted in the past:
Japan has been the only country to observe the agreement reached at the November 2008 G20 emergency meeting in an attempt to prevent a currency war. In contrast, western nations have freely pursued weaker currencies: the UK and the US via massive quantitative easing and Switzerland via direct intervention on the forex market.
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