The common line from politicians, including New York’s Chuck Schumer, is that China must be punished for fixing the price of the yuan, as it hurts US manufacturers.
But the very plugged-in Tim Carney hears “whispers” from K Street lobbyists that there may be something more at work:
Currency exchange rates are a major playground for hedge funds. George Soros, for instance, has multiplied his hedge funds’ value a hundred-fold through currency speculation. One K Street lobbyist told me he’s received phone calls this week from a hedge-fund client desperate to learn if and when Schumer and Baucus’s fight to un-peg the yuan might go through Congress.
So the question is this: Which hedge funds are betting on the yuan rising versus the dollar (or possibly even falling)? And is anyone at that fund keeping in touch with Schumer?
What’s interesting, too is that Schumer’s partner on this fight, Montana Senator Max Baucus is the second biggest recipient of financial industry money after Schumer.
So far this is speculation and rumour, and we doubt it will get beyond that… that being said, the fact that it’s not two Senators known for their efforts on behalf of manufacturers leading this fight is suprising and noteworthy.