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Albany Rifles,
Col yu's reply hits the mark and I would like share my observation as well; I think Tim made a horrible "political" mistake by calling out yuan for what it is during his confirmation hearing, he was economically correct. Since then he switched the buzz word from "under value" to "internal consumption" (to quote Obama's speech from yesterday) and that seems to work better.
The dollar has been extremely stable for the pass three months and the Yuan has not be de-value to boost export as many have feared during the 1st QT of this year. Now with focus on internal consumption and foreign natural resource acquisition, the yuan might be heading toward its real value a bit. But it will still be under value in a short term. The wild card is inflation -- Chinese banks have been pumping so much liquidity into the market in the last two quarters that caused fear of an overheating.
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