Right now, the peg of the RMB to the USD is keeping the USD afloat; unpeg the RMB and not only will the RMB appreciate against the GBP and EUR and other currencies, the USD will sink like a rock...
JMO, China knows full well what happens if, or maybe I should say when, the US dollar devalues. They’ll have revolution on their hands too because of the economic situations that will decline in their country if we can’t afford their “stuff.” I think they’re playing “mind games” with Obama in hopes of getting concessions on some other issue (i.e. Taiwan, etc.)