A sure hint a criteria is invalid

Quote:

Previous administrations have used three factors to determine if a country is a currency manipulator -- a trade surplus with the U.S. of more than $20 billion; a current-account surplus totaling more than 3% of its gross domestic product; and repeatedly devaluing its currency by buying foreign assets that equals to 2% of output a year. Related: Trump breaks key rule for presidents The last report released in October found that six countries -- China, Japan, Korea, Germany, Taiwan and Switzerland -- met two of the three criteria.

For me , having a single eurozone country, no matter how big it is, matching a criteria for currency manipulation, should be a hint that the argument to detect such manipulation has a serious flaw. Instead Trump (initially) accused Germany of manipulating the Euro. A *strong* exporting country, even without manipulation would fit the "2 out of 3" criteria "a trade surplus with the U.S. of more than $20 billion; a current-account surplus totaling more than 3% of its gross domestic product".

Note : while I agree that from the perspective of the German market the euro is undervalued, I am speaking here of the criteria used by the administration.

via International Skeptics Forum http://ift.tt/2ox2Hen