Trade war with China??

"Today, the downturn is rolling ahead full bore and the rhetoric against the Yuan is nearing fever pitch! Chinese Premier Wen Jiabao stated this past week that a 20% Yuan devaluation would trigger severe job losses and social instability, putting his country at risk. That is to say, the Chinese are presenting this (falsely) as a matter of life and death for them, a situation that requires an extreme response if escalation occurs. . . . Some U.S. business leaders have spoken out against pressure on the Yuan, pointing out that China holds all the cards if a currency war is initiated. . . . This is absolutely true. The problem is that the elites in our government fueling this conflict are well aware that China can and likely will begin a T-bond dump that will implode our currency. They know that China has absolutely no incentive to increase imports from the United States while it holds all the industrial capability necessary to supply itself with needed goods and a solidified ASEAN trading bloc to support its expansion. They also know full well that tariffs and trade embargos in the midst of economic meltdown tend to inflame retaliation and lead to even greater collapse, just as the Smoot – Hawley Tariff Act did in 1930, right before the Great Depression spiraled out of control."
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