If you agree with the Detroit crowd and Europeans who want to pressure Japan into strengthening their currency, pay attention to what happened today. A rapid unwinding of the Yen carry trade will whack this market. If you want China to rapidly unpeg the Yuan, get a clue. Today was a hint of what can happen to the US with small changes in foreign markets. Yes, today was a small change in China (in my opinion.) The big changes came from China’s measures to satisfy US protectionists policymakers over the past few weeks. Listen to John Rutledge, he is extremely clued in to what is happening. I had hoped that Secretary Paulson would be able to keep the politicians out of currency markets, but I fear that is going to be tough. I’ll keep this short - you will not immediately (or ever) save or create US jobs by messing around with exchange rates. You WILL, however, create rapid wealth loss. Today was a sample of what political meddling will do. I am not saying that currency protectionism caused today’s selloff, but I do believe a similar or worse fate will be in store for us if we persist with politicians trying to dictate exchange rates.