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"There's a difference between restraint and willful blindness to consistent problems," Obama said, referring to Beijing's worry that instability in the North could cause major problems across the border in China. Obama said he wants the U.N. Security Council to produce a "crystal-clear acknowledgment" of the North's action. The cooperation of China, a veto-wielding member of the Security Council and North Korea's major international supporter, is crucial to that goal. Obama said shying away from the harsh facts about North Korea's behavior is "a bad habit we need to break." He also emphasized the importance of China carrying through on its pledge to introduce more flexibility in how it manages its currency, the yuan. "A strong and durable recovery also requires countries not having an undue advantage," he said. "As I told (Chinese) President Hu Jintao yesterday, the United States welcomes China's decision to allow its currency to appreciate in response to market forces. We will be watching very closely in the months ahead." The G-20's final summit communique did not mention China's currency directly, only generally expressing a need for countries to have flexible currency exchange rates. It did not take China to task for its managed currency policies, which American manufacturers blame for the loss of millions of jobs because they keep the cost of China-made products artificially low. Asked about the timing for China to increase the yuan's value, Obama said that as more market forces come to bear, he believed the Chinese currency "is going to go up significantly." Obama was asked about the prospects of his Supreme Court nominee Elena Kagan, whose confirmation hearings begin Monday before the Senate Judiciary Committee. He said his former Senate colleagues "should pay attention to Elena Kagan's record and her testimony ... and then vote their conscience." He called objections to Kagan raised by Republicans "pretty thin gruel."
[Associated
Press;
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