Whats the right policy toward China?
They put a few trillions dollars worth of stuff on boats and sent it to us in exchange for U.S. government bonds. Those bonds lost a lot of value when the dollar fell relative to the Euro and other currencies. Then they put more stuff on boats and took ever more dubious debt in exchange. We are in the process of devaluing again.
The Chinese government's accumulation of U.S. debt represents a tragic investment decision, not a manipulation effort. The right policy is flowers and chocolates, or at least a polite thank-you note.
