And bang on cue, here's our Senators insisting that China's 2.1% micro-revaluation is simply spit in the eye of good ol' Uncle Sam. From MarketWatch (excerpts):

Two U.S. senators urged Beijing Thursday to let China's yuan currency appreciate further, or face the threat of punitive tariffs on Chinese goods.

Sens. Lindsey Graham, R-S.C., and Chuck Schumer, D-N.Y., said they were encouraged by China's decision last week to let the currency appreciate by slightly more than 2% against the U.S. dollar, but expressed concern over a subsequent statement by China's central bank, which warned that there would be no further changes in the currency's valuation. See earlier story.

Schumer said he and Graham remained optimistic China would let the market play a role in dictating the value of the yuan.

If China doesn't let the currency appreciate further, the senators said they would press ahead with legislation to impose 27.5% tariffs on Chinese goods.

"While the Chinese central bank has said that they will not do another fixed valuation in the near future, we trust that the Chinese will allow market forces to work. But we want to be very clear - our bill is still scheduled to be voted on before the end of the Senate session in October. If it seems like the Chinese are moving forward - great; if not, we are still ready to vote on our bill," Schumer said.

Yes, great believers in unfettered market forces, our Senators. (See the newly passed energy bill for more details on our commitment to avoiding industry distortions.) So much for putting that baby to bed.

I think the Chinese embassy in Washington really needs to think about upping that US$22k per month lobbying account with Patton Boggs. The job may be tougher than they think. Watch for more barking while Imagethief, meanwhile, continues to ponder the wisdom of living in China but being paid in dollars.