There’s no way now that the matter of yuan manipulation doesn’t become a huge political issue in the US, especially as the clock ticks for Obama to create jobs.
You have to figure that after the November GOP landslide, Obama will feel he has a year or maybe less to produce major results so that he can somehow win re-election in 2012.
He has to start early playing the yuan card, putting max pressure on China to to let its currency strengthen against the dollar.
As Ian Talley at Dow Jones notes, the big yen intervention move only raises the stakes as it’s now clear that Japan is doing something about currency, leaving the US as the odd man out.
Business Insider Emails & Alerts
Site highlights each day to your inbox.