US Commerce Secretary Locke again called on China to let the Yuan rise today but Chinese officials said they need to see exports recover substantially to pre-crisis levels before they do so. That will take two-three years, they say.

They’ve essentially given away the game. The buck will remain under pressure until China substantially revalues its undervalued currency and its Asian neighbors follow suit.

We’ll have corrections along the way, but a secular trend change is unlikely as long as China tries to export its way to prosperity while accumulating massive FX reserves.