Cock-a-doodle-doo.

The article discusses the impact of China's exchange rate on the United States' trade deficit. Many western policy makers and businessmen hope that there will be new thinking in Beijing to revalue the Chinese yuan, which is pegged to the falling dollar. The yuan is grossly undervalued and represents the biggest obstacle to a reduction in the U.S. current-account deficit. A revaluation of the yuan would have little impact on America's deficit, and the more that foreigners pressure China to act, the harder it is for China do so. China accounts for only 10% of America's total trade, so a 10% revaluation would reduce the dollar's trade-weighted value by a mere 1%. The American government needs to borrow less and households must save more and spend less. Li Ruogu, the deputy governor of the central bank, made clear that China would adopt a more flexible exchange rate, but in its own time, not under pressure.