Here's Blinder in today's WSJ: "But calling QE2 "currency manipulation" is a grotesque abuse of language".
His (correct) argument is that QE2 is basic everyday expansionary monetary policy just applied to a different portion of the yield curve. Sure it may have the side effect of lowering the dollar, but.....
People, the foreign reaction is a predictable consequence of our insistence in labeling China's fixed exchange rate as "currency manipulation".
A fixed exchange rate is a basic everyday policy regime. Bretton Woods was a system of fixed exchange rates, so the US has had a fixed exchange rate in the not so distant past. The countries of Western Europe continued to struggle to achieve a system of fixed exchange rates post Bretton Woods, culminating in the creation of the Euro which is a system of fixed exchange rates between all the participating countries.
Here's another gem from Blinder: "the US is sovereign nation with a right to its own monetary policy".
And China isn't???
Our administration and elite pundits have been blaming other countries for our problems for a while now, so it's not surprising that many other countries are enjoying their chance to throw it back into our faces.