I assure you that if more Americans had less money we would end up buying less foreign goods which would raise the cost of foreign goods over time. Now if China really has a fixed exchange rate with the U.S... than I'm confused as to what is really going on. Here is a quote from the article: " They’ve done this mainly by trading renminbi for dollars, which they have accumulated in vast quantities.And in recent months China has carried out what amounts to a beggar-thy-neighbor devaluation, keeping the yuan-dollar exchange rate fixed even as the dollar has fallen sharply against other major currencies."Now renminbi really just means Yuan. So here in the first paragraph he says that China is buying USD to keep Yuan up. Then in the next one he says that China keep the "exchange rate fixed"What? If fixed means they're using Free Market actions to keep a price at a certain level then they are allowed to do this (it costs them money, thus free market). So from what I see there is no fixing, simply a policy of buying USD to keep the value of USD up higher. If I am wrong please correct me (citation would be nice, I am simply citing the article).