This refers to the report “China currency revaluation would make goods more expensive” (May 16). Chinese renminbi is purposely undervalued. If it were left to market forces then the currency will get stronger leading to a reduced US trade deficit. That will appreciate US dollars and give US buyers more purchasing power. The writer is wrong in presuming that Chinese goods will be expensive because they are all labor intensive and since no rise in wages will take place in China, Chinese goods will not become expensive. China's large reserve of $2 trillion is in itself indicative of US economic gloom.
