Although Geithner’s trip to Beijing may have moved the country closer to a yuan revaluation, it may be too little too late.
Michael Pettis went on Bloomberg today to discuss the need for an immediate revaluation.
With European trade going down the hole, either China or America will have to pick up the slack. America can’t afford a bigger trade deficit, Pettis says (1:30), and would be forced to launch a trade war. (via PragCap)