And, further, the Chinese don't have to dump their US Treasuries to shift their peg to the EUR / YEN / GBP / AUD / SWF ... they just have to stop buying new ones.

Sure, the Renminbi value of the US$ Treasuries they hold will fall, but the purpose of buying those US$ Treasuries was to maintain the discounted exchange rate against the USD, which has already been done ... the "cost" of the process of creating Renminbi to purchase US$ Treasuries to maintain a discounted RNM/USD FXR was the trade of financial return per transaction for increased volume and lower unemployment.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.