[lbo-talk] yuan dollar

[bhandari at berkeley.edu]

Yes as I did suggest James Galbraith's explanation is strained; he needs a
whole family of such explanations. But if Paulson is putting pressure to
revalue RMB upward, backed by Congressional threat of trade sanctions,
unless full capital convertibility is allowed and the financial sector
opened, well then, we now have quite a different explanation for Paulson's
and Congress' 1+2 punch than we started with. The US government is not
really playing to but taking advantage of Sinophobic popular reaction. I
wonder whether Max, Jeff Faux and others have anything more to say at this
point.
Rakesh