I want to highlight the currency issue in the NY Times article, blogged below, about China's protectionism.  Remeber that everyone thinks that China is our "banker." That is really not true becuase they hold only about 12% of our Treasury bonds.  There are many, many buyers of those bonds out there.

And as to the fraction purchased by the Chinese?  They keep buying because they are committed to keeping their currency too low, to make their exports artificially cheap and to make imports artificially expensive.

In other moves, Beijing has halted the rise of the renminbi against the dollar by intervening heavily in currency markets, dumping billions in renminbi and buying dollars and other currencies.

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