Courtesy of Edward Harrison at Credit Writedowns
Excerpt:
Obama is politically savvy in trying to recast anti-protectionist sentiments as creating export jobs. Nevertheless, over the longer-term, the currency issue is still the sticky wicket in the China-US relationship. And no amount of talk is going to change that. A gradual revaluation is in everyone’s interest, especially China given its high level of consumer price inflation. I anticipate that this is what we will see in 2011. When the next recession hits, however, the protectionist sentiment will return.
Update: here is a CNBC video discussing these issues.
Also see: U.S. and China reach $45 billion in export deals from Reuters
