Few minutes ago on BBC WORLD they had some economics experts and one of them is an analyst with investment bank Goldman Sachs based in Newyork..This dude kept emphasising that the the only solution lies with trade talks with China AND he kept going on about China revaluation will solve the US deficit issue.The interviewer (Daljit)failed to understand the real reason why US has such a massive deficit.

the answer is LOW SAVINGS RATE BY AMERICANS!!

Simply put, the Chinese save and the Americans spent. By saving, the Chinese use that savings to sell products, NOT BUY PRODUCTS and the Americans BUY THESE CHINESE PRODUCTS WITH BORROWED MONEY!!

The US senators using the China revaluation issue are just plain "political talk" to get votes. They just could not think of any other ways so they have to find a "culprit" to justify protectionist legislation like slapping tariff for Chinese products.

The US legislators should think of ways to improve US ability to sell goods abroad at LOW PRICES BASED ON LOW COST!! That's pure economic sense, and the Chinese understand this basic economic rule. The Americans, including the US legislators, don't want to deal with this basic rule. What the US legislators are doing is TRYING TO LEGISLATE ECONOMICS!!! IT WILL NOT WORK AND NEVER WILL!!

So far markets in Singapore are about to close and it doesnt look good