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Currency Wars 'Side Show' at China Summit: Market Pro

As Chinese President Hu meets with U.S. lawmakers and CEOs, the valuation of the yuan is a "side show" next to getting better treatment for U.S. businesses in China, James Rickards, sr. managing director at Tangent Capital, told CNBC on Wednesday.

"You could double the value of the Chinese yuan and it wouldn't create one job in the United States," said Rickards. "Chinese workers make 10 percent of what U.S. workers make. If you double the yuan and all of a sudden they make 20 percent, no one's going to move jobs to the United States."

Rickards pointed out that the banking, securities and futures industries came together to sign a letter on an "engaged China" yesterday.

"It reminds me of President McKinley from 1899 saying 'open up your market let us in.' This has been in American policy for 110 years," Rickards added.

Rickards also said the Federal Reserve's $600 billion bond-buying programis about getting China to revalue the yuan. China, the largest foreign owner of U.S.-backed Treasurys, recently cut its holdings by $23 billion in November, according to the Treasury Department.

"When you print money in the U.S. where does it go?" said Rickards. "Well, most of it is going to China. China has to print local currency to absorb the dollar inflow so that creates inflation in China."

"We think of this as a boxing match-you're scoring on points- we just won round one in the currency wars," he added.

This comes as other emerging countries like Brazil and India also battle inflation. Escalating food and energy prices have already taken a toll on their stock markets.

In fact, a number of countries including China have criticized the Federal Reserve's second round of monetary stimulus, as it has exacerbated their inflation problems.

While the first round of Fed stimulus was necessary, said Douglas Eakin, a former Congressional Budget Office director, the second round is "inappropriate."

"It takes an option off the table that they should have held onto in case something bad happens," said Eakin, who appeared on CNBC with Rickards. "They don't get anything for it- 40 basis points on long rates at best and they pick fights with our international economic partners."