Marct - Thank you for that much more nuanced response. I was afraid that we had a member of the Bill Gertz Brigade aboard.

There will be no "trade war" with China. What we are looking at is just more rumbling in a very uncomfortable two-way snakefest that has been ongoing for almost a decade now. RGE's Brad Setser has a good roundup here.

In the long run, both China and the U.S. would be better served by China untethering the RMB from the dollar and allowing a controlled appreciation.