Asia banks in the driving seat

William Pesek JR

The US should be grateful for Asian central banks' grip on local currencies

After months of beating up on Asia's currency policies, US Treasury Secretary John Snow has gone eerily silent on the subject. The world's largest economy is addicted to the hundreds of billions of dollars worth of Asian capital sent its way each year. It finances a widening current account deficit, allowing the US to live beyond its means. It keeps bond yields low, stocks up and spirits high. Asian central banks are the key enablers here. They own loads of US Treasury and agency debt. Biting the hand that feeds you and your markets is always a risky strategy. The White House may be recons...