Tuesday, February 21, 2006

TIME TO GET OUT YOUR RATTLIN' SABERS

Chalk this up to more unfinished first term business for the Presidnet pro tem. Despite all the fan fare over China's announcement last summer that it would break from it's long-held peg to the US$.


Am I seeing double?

So Secretary Snow is up in arms, again, brandishing his rattlin' saber. FT.com:

John Snow, US Treasury secretary, hinted strongly last week that his department was likely formally to accuse China of being a “currency manipulator” in its next report on trade and exchange rates, saying the regime that Beijing introduced last summer had not led to greater flexibility.

But don't worry China, he won't be rattling too hard:

Treasury officials have sounded out investors and Wall Street traders on the possibility of branding China a currency manipulator in the next instalment of the twice-yearly report on currencies, required under the 1988 Trade Act.

Wall Street likes the strong dollar (makes it easier to colonize foreign financial systems) not to mention liquidity in the benchmark 30 yr treasury bond market.

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