John Connally and Devaluation

Nixon-era Treasury: To be fair, Japan has acted with similar self-interest since late 2012, when its 35 percent devaluation began, according to The Japan Times. But that raises a prickly question: What options do Asia smaller economies have when the region two biggest seem intent on passing their own vulnerabilities onto everyone else China will be watching closely for the region response, for economic as well as political reasons. As China lowers the value of the yuan, the country economic policymakers are mimicking the blase attitude of Nixon-era Treasury chief John Connally, who dismissed international complaints about U.S. monetary policy with a curt remark: It our currency, but it your problem. Beijing designs for regional leadership have always depended on winning the loyalty of its neighbors in order to reduce America financial, diplomatic and military role in Asia. Less clear are the potential responses of South Korea, Indonesia or the Philippines. Vietnam has already initiated a devaluation of its own, lowering the value of the dong by 1 percent on Wednesday in order to keep pace with China. (news.financializer.com). As reported in the news.