Ping!
buy yuan
Why would they stop at warning China about its currency, when China is also engaging in limited warfare with India and also has threatened Taiwan? Also a consideration -- North Korea exists only because of China, and China has failed to pull its own weight in the nuclear disarmament of Kim Jung Il.
Add to the context the masses of contributions to the DNC in the 2000 election and the disappearing nuclear information, I think that there is real trouble with Beijing.
It's a tight rope the Administration is walking. Putting pressure on what I think is the second single biggest purchaser of US Treasuries could back-fire on the Administration. I think a better policy would be to lessen our dependency of foreign creditors, take substantive steps to lessen our current fiscal deficits, and focus on reinvesting in our own manufacturing base.