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While not defending Benny in the least, it seems he is doing exactly what he said he would do and he is doing it with the approval from the top levels of our government.

Bernanke:

"I think it’s entirely unfair to attribute excess demand pressures in emerging markets to U. S. monetary policy, because emerging markets have all the tools they need to address excess demand in those countries. It’s really up to emerging markets to find appropriate tools to balance their own growth."

Recall last summer there were extensive articles and discussions about the mercantilist Chinese etal and that they needed to de-peg to allow their currencies to float in order to for the global economies to re-balance. The bottom line was the US was no longer going to see its labor markets destroyed by this tactic.

This is the result and those countries who did not heed Bennies warning are in for a bad time. The Chinese risk major social unrest and possible political destabilization if they continue down this mercantilist path.

Now I do not approve of this approach, far from it. But what exactly does one expect?

sschu