US Treasury Secretary Tim Geithner was on Charlie Rose the day before yesterday explaining his position on alleged "currency manipulation" by the Chinese. This quote stands out as defining his position:
What’s happening is, as China holds its currency down, their currencies are moving up and they’re having to work very hard to make sure they’re not at an unfair disadvantage with China.
Does that mean he will label the Chinese manipulators and set the stage for retaliation? Probably. Listen to what else he has to say in the video below. It runs six minutes. The full video is on the Charlie Rose site and covers other issues.
Also see Bloomberg’s "Geithner Signals China Causing Global Currency Interventions".