If you think China's decision to unpeg its currency from the U.S. dollar was a good move, Gary Shilling says don't believe it. The economist who saw the subprime crisis coming warns that the move will have a number of unintended consequences.
While bright U.S. minds use financial ingenuity to build vast personal fortunes, China is investing capital to build a modern Silk Road to ship raw materials and finished products between East and West -- creating jobs and building real economic growth along the way.
Treasury Secretary Timothy Geithner told lawmakers Thursday China is making progress in addressing U.S. concerns over the glaring trade imbalance between the countries, but much works remains to be done to promote a level playing field between the nations.
April's trade report provides fodder for the bears, who will likely point to the month's 0.7% drop in exports as further evidence that international demand is not going to drive a self-sustaining recovery in the U.S.
U.S. consumer confidence rose for the third straight month in May, hitting its highest level in more than two years, as optimism regarding business conditions and the job market increased. But that trend could reverse in a hurry if Europe%u2019s debt crisis relapses.
China is set to raise tariffs on certain chicken parts imported from the U.S., which may be as high as 31.4%.
One of the biggest battles in financial reform is whether derivative trades will move out of the shadows into a public exchange. Derivatives played a major role in the financial meltdown, but because private trades are highly profitable, big banks and their GOP allies are fighting hard against reformers' push for new regulations.
Chinese President Hu Jintao rejected President Barack Obama's call to let the yuan appreciate against the dollar, saying the two nations "should respect each other's core interests and major concerns," and affirmed that his country's monetary policy won't be swayed by "external pressure."
Geithner squeezed in a trip to Beijing on his way home from a visit to India. His mission: to diffuse ever-increasing U.S. trade tensions with China ahead of a meeting next week between the two countries' leaders. Chinese officials may be in a mood to compromise.
Based on his long experience as a Western entrepreneur in China, Perkowski has compiled five top keys to success for American companies that want to business there (looks like Google missed No. 5). Here they are...
China will send an envoy to Washington next week to ease tensions over trade and the rate of exchange for the Chinese yuan, which some U.S. lawmakers say is unfairly undervalued by as much as 40%.











