I was invited to appear on CNBC Asia Rundown show with Pauline Chiou. We discuss the Chinese yuan on the anniversary of last summer's unexpected devaluation. I suggest that most of the things that get observers excited, like the internationalization of the yuan, or the Hong Kong-Shanghai link or, perhaps by the end of the year,a Hong Kong-Shenzhen link are really Chinese machinations that are the result of its contradictions.  

Hong Kong is part of China. Is the movement of good and services within the same country really trade? If if that movement of goods and services are invoiced in yuan, should that really count as the internationalization of the yuan? In the US, a person in New York can trade on the Philadelphia exchange. No big deal. When China begins allowing those with accounts in HK to trade in Shanghai or investors in Shanghai to invest in instruments that trade in Hong Kong, for some reason many observers want to celebrate this as some important, innovative measure that reflects the "opening up" of China.  

The interview is about 2.5 minutes and can be found by clicking here.