Dollars and Yuan

Quite a bit of interesting news today. Note also this report comes from the IHT directly—it isn't copied from its older brother the NYT. (Which the latter continues its slide into oblivion.) Of course the Chinese will keep the yuan low despite US jawboning. It's not just about trade, per se, but capturing markets and long-term technological advantage. Meanwhile we'll continue to run enormous current account deficits until the rest of the world gets sick of accepting our green paper in exchange for real goods. At that point (next year, five years out, who knows?) the US economy will take a massive hit. It seems unavoidable, to me, but I may be wrong.