Geithner & Krugman on the official exchange rate of the Chinese Renminbi

From the WSJ: China Has Done ‘Very Little’ on Exchange Rate: Geithner

“China took the very important step in June of signaling that they’re going to let the exchange rate start to reflect market forces. But they’ve done very, very little, they’ve let it move very, very little in the interim."

And from Paul Krugman at the NY Times: China, Japan, America

Back in June, Timothy Geithner, the Treasury secretary, praised China’s announcement that it would move to a more flexible exchange rate. Since then, the renminbi has risen a grand total of 1, that’s right, 1 percent against the dollar — with much of the rise taking place in just the past few days, ahead of planned Congressional hearings on the currency issue.

From Calculated Risk: Obviously China is a "currency manipulator" ... now what?

I tell you now what - nothing will happen, because they don't want to upset their biggest creditor.