This should be interesting. Of course, we should never have let China dump goods in our market by abusing their currency and enjoying a smooth-sailing WTO process; now the problem has festered too long and China is the one in control.

Facing the possible loss of both houses in mid-term elections in November, Obama may see no choice but to sign legislation if Congress sends him a bill, Roach said in an interview. That would lead China to retaliate with its own measures and may even trigger sales of Treasuries by the biggest foreign holder of U.S. government debt, and a subsequent rise in U.S. interest rates, Roach said.

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