This is fairly obvious, but my mate in the white shack never admits it: The yuan has the right exchange rate. Not that 7.9820 would be better than for example 8.3140 or 7.2172, but it is equally good. The world is a market economy (whether we like that or not) and if the exchange rate is fixed, the prices will change. If the exchange rate is floating, prices may stay fixed within their currency.
No one expects a special currency for Nebraska to adjust all Nebraskan prices and wages at the same time.
When my mate talks about the need to revalue the yuan, the main message is for his compatriots: I fight to protect you against foreign evil.
Whether that fight serves any purpose except on voting day is a different matter.
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