I had highlighted this earlier. The best strategy for US is to print away and let China and other economies buy the paper. In the end, it will devalue the dollar and bring competitiveness back to US. China will be caught holding the bag. I believe it will be caught with an approximate 4Trillion dollar bag when it realizes it is being duped. But then China should not complain - it was amply warned about exchange rate issues. I don't think Chinese get this game yet. Else they will be more pointed in their comments.
- Rahul Deodhar