Central bank governor Zhou Xiaochuan said in an interview published Tuesday that China would stop stockpiling foreign exchange reserves. "Many people say that foreign exchange reserves in China are (already) large enough,'' Zhou told the Emerging Markets magazine. We do not intend to go further and accumulate reserves," he said.

This leaves open an obvious question - if Mr. Zhou and his nice central bank won't finance the US current account deficit by accumulating US dollars, then who will? If he stops buying dollars, then demand will fall and so will the price of the dollar relative to the yuan. Chinese goods will become more expensive, US consumers will stop shopping at Walmart and the Chinese economic miracle will suddenly become the Chinese economic nightmare.

He can't be serious, can he?