David DeRosa, a finance professor from Yale, offers this succinct analysis of the push for China to unpeg the reminibi. He also further exposes how lost our US Senators are when it comes to economic issues.

For some reason, China's foreign reserves, of which these dollars are a large part, are a red flag to U.S. elected officials. They look at this as a smoking gun, proof that China is pulling a fast one with the yuan.

Few people have taken this analysis to its logical conclusion. What's going on is that China's yuan policy, combined with its trade surplus, forces the regime to accumulate dollars.

And where do those dollars go? Answer: The U.S. government bond market. They don't keep the dollars in cash -- they buy U.S. bills, notes and bonds.

So no wonder U.S. Treasury yields are so low -- a fact that is helping U.S. industry, small and large.

Put it this way: If you think China is manipulating the currency market with the yuan's peg, then you also have to acknowledge it is therefore manipulating the U.S. government bond market -- and it is doing the later to the benefit of the U.S.

Now if the yuan were to become a floating currency, or at least revalued, the demand from China for U.S. government debt would either cease or be substantially reduced. And that would partially undo, and maybe reverse, the work that the U.S. Federal Reserve has done to make credit cheap.

Is that what Senator Snowe wants? Be careful what you ask for because you just might get it.