China has been criticized for its manipulation of the yuan. The belief of the economic establishment is that a weak currency is advantageous to an economy. Although this is a view held by many it is completely wrong, and as Americans are about to find out it is also very dangerous. 

It seems that most "economists" are impervious to economic principles. For this reason, they continue to encourage China to remove the currency peg that is propping up the US economy. When this happens the living standards of Americans will fall dramatically. If Australians want to protect themselves from following in America’s footsteps we must understand some basic concepts.