The Boy Who Cried Wolf Calls For Stronger Yuan Again

Hank Paulson will likely go down as one of the worst Treasury Secretaries in history. I don't mind stating so given his complicity in Wall Street's lecherous acts against America and his disregard for our democratic ideals as Treasury Secretary.

Paulson is heading to China for another photo op - often confused with negotiations - with its leaders. What have these glad-handing sessions accomplished? And, as he prepares for his trip, he continues to urge the Chinese government allow the yuan to appreciate against the dollar. Paulson is again a day late and a dollar short. Our post yesterday showed the yuan declining 7% in a day against the dollar. It appears the devaluation of the yuan might arrive as an early Christmas present. Now what Hank?

I am confident the future Treasury Secretary will not be leading Wall Street's negotiations with China under the incoming Presidency. It will be the Secretary of State. And, she isn't likely to be as happy as Hank either. If the Chinese devalue the yuan and/or cut back on their Treasury purchases, there will be even less reason for the U.S. to continue its game of badminton with China. Can you say possible trade war? The future is going to be very interesting.