http://news.bbc.co.uk/2/hi/business/3341885.stm
The PRC government buys large quantities of TSYs, which has the effect of supporting the dollar against the yuan.
We scream and beat our chests, saying the yuan is undervalued and that we'll slap tariffs on Chinese imports if they don't let the yuan strengthen.
The Chinese government must be wondering how to use all this power....for if they DO sell TSYs, our interest rates will shoot up and the dollar will drop significantly.
No wonder the Bushies have been nice to the PRC recently....backing them on Taiwan and patronizing their hookers........
My question, which Bush (George Jr or Neil) is more in bed with the PRC, and how much does it matter to the campaign and to the US economy?