China increases interest rate - I think it's a good thing. Here's why

The Chinese currency is called the 'Renminbi' and is referred to as the RMB.  (Wikipedia)

The Guradian:  "However, the rise was seen more widely as appeasing US policymakers, who have called for China to increase the value of its currency."
So this is what the U.S. has been asking for.  So it must me in our best interest.

The Financial Post:
"However, markets reacted negatively to the decision, a “knee-jerk reaction” from some who did not see a hike coming, Nick Chamie with RBC Emerging Markets Research said."
So what.  The market reacts negatively to almost anything that was not anticipated.  If hundred dollar bills started floating down from the sky, and if it wasn't predicted, the market would go down.

Elite Trader:
"A stronger RMB means the US and Euro zone (China's largest trade partners) import less from China, while China imports more from the US and Euro zone."
and
"It also signifies a trend reversion of trade account deficits to possibly surplus, especially within the US."
and
"Such an inflationary move in the US may be just what the doctor ordered, as nominal wages rise and accumulated debts currently stifling lending (reflecting bank insolvency) would be rendered non-issue."
Good, good and GOOD!  The U.S. imports less and exports more!  More jobs HERE!  Higher wages!  Debts become a "non-issue"!!


I've done several posts on China and economic issues.  Here's some links:
Why can't we be as smart as China?
Why do we help support the 2nd largest economy in the world?
"China a surprise leader in clean energy: study"
SeaTimes & The Most Revolutionary Act