An appreciation of the renminbi has not been and will not be able to narrow down the US' trade deficit with China

Despite the fact that the White House has finally recognized that compromises with regard to China's exchange rate are more receptive than coercion, exemplified by last month's surprise visit by United States Treasury Secretary Timothy Geithner, a higher renminbi rate is still not the one-off solution for the US' predicaments.

Even though the Obama administration postponed a report that would label China a currency manipulator, the road of recovery for the US will be long and arduous and is hampered by its over-leveraged consumers.