The Plunge Protection Team Blog

Mr. Paulson just can't seem to give up on the one currency that the dollar refuses to weaken against due to huge government intervention: the Chinese Yuan/Renminibi. Not to be content until the US dollar has crashed against every currency and commodity on the planet save maybe the Zimbabwe dollar, Mr. Paulson was out again this morning telling the Chinese to give up their foolish game of pegging the Yuan to the dollar:

"The issue with the renminbi is simply that it's not market determined, and I don't think anyone I talk to is arguing that China is ready to have a market-determined currency," he said in answer to an audience question at an event organized by the China Institute of New York.

"But I think everyone I talk to about this essentially agrees that they should be taking steps very quickly to get to the point when they could have a market-determined currency," Paulson added.

"In the meantime, they should be appreciating the (yuan) more rapidly so that it will reflect underlying fundamentals."

Now, a word of wisdom to the Chinese: these men -- Paulson and Bernanke -- mean business. If you think you can weaken your currency faster than they can weaken ours, why... you obviously haven't met them. No one runs a printing press as fast as they can. No one!

So, you might as well just let your currency appreciate. I suggest buying some more gold or maybe a few Manhattan skyscrapers with the proceeds.