Expect China to continue its policy of a gradual appreciation of the renminbi against the dollar, and the decibel level of the rhetoric from the Obama administrationon the value of the renminbi to be substantially reduced in the months ahead.
The decreased level of spending on the military and programmatic reductions already endorsed by the Administration can be expected to accelerate this trend.
But the senior administration official said that Mr. Obama had made no decision on the long-term troop level, and would be making no further announcements in his State of the Union address, beyond the cuts to the force this year.