By setting the value of the Renminbi unfairly low, Chinese exports are made artificially cheap, while (American) imports are artificially expensive. Normally, this would lead to a large increase in the money supply which would drive up domestic prices and negate the unfairly low exchange rate. However, by forcing banks to buy trillions of very low-yielding Renminbi bonds, and altering bank reserve ratios, China’s currency manipulation has no expiration date.