that would make our goods more competitive and reduce our trade deficit. on the other hand, it would be bad for china which would suffer large losses on the dollar holdings. in short, right now america has china over a barrel, not the other way around. david, i know you both have something to say about this. david? well, it s very counterintuitive, isn t it? yeah. that the world s largest borrower has its biggest creditor over a barrel. most of the world doesn t see reality in that way. paul s views drew a sharp rebuke from a leading kmits at morgan stanley, steven roach, who worked a lot on asian issues. we are clearly in the midst of a serious debate at home about what the u.s. approach ought to be toward china. richard, what do you think of the quote? this is a classic beggar thy neighbor policy. when you get one country