Mailbox

Courtesy of GATA.
Have these people gone mad?
China is the banker of the USA.
They are not responsible for the US Federal Budget deficit.

9:35 Follow-up: Senate bill to be unveiled today threatens stiff penalties on China if it does not revalue its currency
Note that Sens Schumer (D-NY) and Graham (R-SC) have previously introduced legislation threatening to levy a 27.5% tariff on China unless it raised the value of its currency and the Senators have added Sens. Stabenow (D-MI) and Brown (D-OH) to the newly formed bill that would instruct the Obama administration to take action against China unless it allows its currency to float freely. Exact details have yet to be announced, but the measure is expected to involve the U.S. government applying reactive duties on imports from China.
The bill comes after Chinese Premier Wen Jiabao brushed off accusations over the weekend that Beijing was undervaluing its currency for an unfair trade advantage and after 130 House members sent a letter to Treasury Secretary Geithner and Commerce Secretary Locke urging the Commerce Department to make a major policy change and agree to impose countervailing duties against countries that manipulate their currency for an unfair trade advantage. Note that the department is already considering that possibility in a case involving coated paper imports from China. The letter also demanded the Treasury Department formally label China as a currency manipulator in a 15-Apr report on the currency practices of major trading partners.