NEW YORK ( DailyFinance) -- For years, U.S. officials have ritually complained that China's currency is undervalued and that the country should let it appreciate. But President Obama soft-pedaled the problem at the White House summit with President Hu Jintao last week. Why? Washington is quietly celebrating that fact that Fed Chairman Ben Bernanke has outsmarted the Chinese government, forcing it to revalue its currency or face increasing domestic unrest. "No U.S. official will admit this, but Bernanke has succeeded in breaking the Bank of China in the same way George Soros broke the Bank of England in 1992," says James Rickards, senior managing director for merchant bank Tangent Capital in New York. "The U.S. has won the first round of the currency war."
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