I've been wondering why the Chinese haven't dropped the dollar peg yet, and Andy Xie has now helpfully come along to explain to me what's going on. Short summary: the Chinese are rather hoping they can do it gradually so as to limit the pain of moving everybody practically overnight into the renminbi as the reserve currency to replace the dollar. One hopes that the coming secondary wave of foreclosures and mortgage crisis in the U.S. won't force them to accelerate their reforms, because if the Chinese lose faith in the dollar too quickly, especially if the U.S. is too paralyzed in stagflation to be able to leverage its currency collapse into an opportunity to move its productivity into exports, then it's going to be pretty painful around here.Well....
[ cf s9: So THAT'S Why It Went Down That Way! ]
I think that this clearly explains why Nancy Pelosi started this whole horrible torture crisis.
Thus proving that Nancy Pelosi MUST stand down, and we must continue to support the war winning ways against china, before they do the same horrible thing that Hugo sadamm hussain chavez obamma did on 9/11.
There is NOTHING to see here but the need for More Glorious Military Mission Accomplished Victory Dinner Dances as our troops continue to win against the Horrors of the liberals of wall street!!!