Example: Chinese market intervention annually to prop up their peg: $195 billion.
Oh, I get it now. A $700 billion dollar trade deficit would make the dollar sink, but the Chinese purchase of $195 billion made it go up instead. Thanks for clearing that up. LOL!
Good to see you can still laugh at yourself!
I know you aren't denying that China does do market intervention as against the U.S. Dollar...right?
You also wouldn't claim that their manipulatory actions are driven by other than their government actions? I.e., as joe has tried to claim...via their own supposedly-burgeoning private sector?
Note how that is belied just this month with the Reuters report:
REUTERS China not seeking to expand FX reserves -c.bank [FYDGTFN]BEIJING, April 5 (Reuters) - China is not deliberately pursuing expansion of its foreign exchange reserves or any particular level of reserves, a vice head of the central bank said in comments published on Wednesday.
The official Xinhua news agency cited Wu Xiaoling, vice chief of the People's Bank of China, as saying that an excessive trade surplus, the source of much of China's reserves, was not desirable and needed to be addressed through policies.
Officials have previously disavowed any desire for larger reserves or an enormous trade surplus.
The central bank was looking to increase access for individuals and corporations to the foreign exchange trade to make it less dominated by the government, she said, offering no details on how that would be done.
Premier Wen Jiabao confirmed on Monday that China's forex reserves at the end of February totalled $853.6 billion, exceeding Japan's for the first time, which stood at $850.1 billion at the end of February. www.reuters.com
In order to lower the exchange rate of yuan China needs to print more money and to purchase dollars. So the Chinese cost of acquiring huge dollar reserve will equal the cost of printing new yuans.