Good morning. Very good article on currency wars.

Currency – The Weapon of Choice in Trade Wars in a World of Lower Demand
http://www.eurointelligence.com/index.php?id=581&tx_ttnews[tt_news]=2918&tx_ttnews[backPid]=901&cHash=8989e62bf2

and this:


The atomic bomb, of course, is quantitative easing by the Federal Reserve. America has in effect issued an ultimatum to China and G20: either you stop this predatory behaviour and agree to some formula for global rebalancing, or we will deploy QE2 `a l’outrance’ to flood your economies with excess liquidity. We will cause you to overheat and drive up your wage costs. We will impose a de facto currency revaluation by more brutal and disruptive means, and there is little you can do to stop it. Pick your poison.
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8054066/Currency-wars-are-necessary-if-all-else-fails.html


 and something on China's options regarding their holdings of US debt

http://www.brookings.edu/testimony/2010/0225_us_china_debt_prasad.aspx