<html><head><meta http-equiv="Content-Type" content="text/html charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div apple-content-edited="true" class=""><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; border-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-stroke-width: 0px;"><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; border-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-stroke-width: 0px;"><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div class=""><i class="">Two articles on currency below...</i></div></div></span><br class="Apple-interchange-newline"></span><br class="Apple-interchange-newline">
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<!--StartFragment--><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-family:Calibri;mso-bidi-font-family:
"Times New Roman"" class=""><span style="font-size:15.0pt;mso-bidi-font-family:Calibri;color:windowtext" class=""><a href="http://www.politico.com/agenda/story/2015/08/how-chinas-currency-move-shows-the-limits-of-white-house-influence-000196" class="">http://www.politico.com/agenda/story/2015/08/how-chinas-currency-move-shows-the-limits-of-white-house-influence-000196</a></span></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><b class=""><span style="font-size:35.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">How China’s currency move shows the limits of
White House influence</span></b><span style="font-size:15.0pt;font-family:Calibri;
mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:16.0pt;font-family:"Times New Roman"" class="">By <a href="http://www.politico.com/reporters/DannyVinik.html" class=""><b class=""><span style="color:windowtext" class="">DANNY VINIK</span></b></a></span><span style="font-size:15.0pt;font-family:Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:15.0pt;font-family:Calibri;
mso-bidi-font-family:Calibri" class=""> <o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">On Tuesday, the People’s Bank of China devalued
its currency by 2 percent, a major change that roiled markets and was the topic
of the day on Wall Street.</span><span style="font-size:15.0pt;font-family:
Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">The timing took even veteran currency-watchers by
surprise, though it makes sense for China:<b class=""> </b>Ever since its stock
market crashed over the past few months, China has been seeking ways to keep
its economy growing strongly, and a cheaper currency is one way to<b class=""> </b>improve
its companies’ competitiveness.</span><span style="font-size:15.0pt;font-family:
Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">So far analysts have focused on what this means
to the Chinese economy.<b class=""> </b>But the move also matters to the U.S. — not
least as a signal that the White House has less influence on Chinese currency
policy than it likes to claim.</span><span style="font-size:15.0pt;font-family:
Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">Just a couple of months ago, the threat of<b class=""> </b>currency
manipulation was a big stumbling block for the Trans-Pacific Partnership, the
huge trade deal Obama is trying to close this year. Lawmakers like Rep. Sander
Levin (D-Mich.), Sen. Sherrod Brown (D-Ohio) and Sen. Rob Portman (R-Ohio)
insisted that the deal should include enforceable language to prevent TPP
countries from manipulating their currency. (China is not part of the TPP but
could be added to it in the future.)</span><span style="font-size:15.0pt;
font-family:Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">The White House<b class=""> </b>argued that any
currency chapter acceptable to other TPP countries would infringe on America’s
own monetary policy. They also implied<i class=""> </i>it wasn’t necessary, and<b class=""> </b>said
things <a href="https://www.whitehouse.gov/the-press-office/2015/05/08/remarks-president-trade" class=""><span style="color:windowtext" class="">like this</span></a>:</span><span style="font-size:
15.0pt;font-family:Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">“Some countries, they try to lower their currency
so that it makes their goods cheaper, makes our more expensive. There was
a time when China was pretty egregious about this. When I came into
office, I started pounding on them. Every time I meet with them, I’d be talking
about currency. And we pushed back hard, and China moved. In real terms,
their currency has appreciated about 30 percent since I came into
office. And we're going to keep on going after it."</span><span style="font-size:15.0pt;font-family:Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">That's President Obama in May, when he delivered
a speech at Nike’s headquarters to promote the TPP.</span><span style="font-size:15.0pt;font-family:Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">His implication was that the White House’s
strategy has been successful. Today’s move suggests that his strategy is not as
powerful as he thinks.</span><span style="font-size:15.0pt;font-family:Calibri;
mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">In its response, the administration framed this
as potentially all part of the plan. The People’s Bank of China called
Tuesday’s action a “one-time depreciation,” and a U.S. Treasury spokesperson
expressed hope that this was the case: <b class="">“</b>China has indicated that
the changes announced today are another step in its move to a more
market-determined exchange rate.”</span><span style="font-size:15.0pt;
font-family:Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">Critics of the White House’s position have a less
charitable view. “There is reason to be skeptical of believing that the largest
devaluation of the Chinese currency in over two decades is merely about moving
to a market-based exchange rate,” Rep. Levin said in a statement.</span><span style="font-size:15.0pt;font-family:Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">More importantly, the critics say, neither the
White House nor its critics know the actual goal of Chinese authorities. And
that alone, they say, is the reason the U.S. still needs a clear<b class=""> </b>plan
to combat currency manipulators, such as imposing tariffs on countries that
Treasury deems to manipulate their currencies.</span><span style="font-size:
15.0pt;font-family:Calibri;mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt;mso-pagination:none;mso-layout-grid-align:
none;text-autospace:none"><span style="font-size:18.0pt;font-family:Georgia;
mso-bidi-font-family:Georgia" class="">“It certainly takes away the argument that China
no longer manages their currency or that it's not misaligned,” said Jared
Bernstein, the former chief economist to Vice President Joe Biden. “It's also a
reminder that whatever happens with the TPP, we need a strategy to deal with
this tactic.”</span><span style="font-size:15.0pt;font-family:Calibri;
mso-bidi-font-family:Calibri" class=""><o:p class=""></o:p></span></p><p class="MsoNormal" style="margin-bottom:6.0pt"><o:p class=""> </o:p></p><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 10pt; font-family: Tahoma, sans-serif;" class="">Politico: Brown, Schumer Blast Chinese Currency Manipulation<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class="">8/11/1512:25 PM EDT<o:p class=""></o:p></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 10.5pt; font-family: 'Helvetica Neue'; color: rgb(68, 68, 68);" class="">Brown, Schumer Blast Chinese Currency Manipulation:</span></b><span style="font-size: 10.5pt; font-family: 'Helvetica Neue'; color: rgb(68, 68, 68);" class=""> Two Senate Finance Committee Democrats have denounced China's move today to devalue its currency in relation to the U.S. dollar, with Sen. Sherrod Brown arguing the move shows the importance of trade tools to fight currency manipulation.<br class=""><br class="">“China will stop at nothing to give its exports an unfair advantage in the global marketplace and this devaluation by the Chinese government is concerning," Brown said in a press release. "[T]he U.S. needs to ensure American businesses and workers have a backstop to fight back against currency manipulation. That means passing our bipartisan bill to punish currency manipulation and demanding rigorous currency disciplines in TPP, which China may seek to join at a later date.”<br class=""><br class="">The Ohio Democrat backs currency language put forward by Sen. Chuck Schumer in the Senate version of the customs reauthorization bill, which would allow the Commerce Department to take currency manipulation into consideration as part of its anti-subsidy duty investigations.<br class=""><br class="">Brown also said it's unclear whether this action by Beijing would be the beginning of a "prolonged intervention" or merely an isolated event. "Given China’s history of currency manipulation, this depreciation must be monitored closely," he said.<br class=""><br class="">Schumer, meanwhile, argued that the move shows the renminbi should not be made a reserve currency by the International Monetary Fund.<br class=""><br class="">“Allowing the renminbi to be declared a reserve currency is akin to putting the fox in charge of the henhouse," Schumer said in a statement.<br class=""><br class=""><a href="http://www.pbc.gov.cn/publish/english/955/2015/20150811090338341860668/20150811090338341860668_.html" target="_blank" style="color: purple;" class=""><span style="color: rgb(1, 93, 166); text-decoration: none;" class="">In a statement</span></a>, a spokesman for the People's Bank of China called the move a "one-time correction," but did not use the word devaluation, referring to it instead as a nearly 2 percent change "in the depreciation direction" against the U.S. dollar.<br class=""><br class=""><i class="">— <a href="http://www.politicopro.com/reporters/?id=1326" style="color: purple;" class=""><span style="color: rgb(1, 93, 166); text-decoration: none;" class="">Victoria Guida</span></a></i></span></div></div>
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