China's Currency Manipulation

From Prof. Becker:
"The US has little to complain if China wants to hold such high levels of low interest-bearing US government assets in exchange for selling goods cheaply to the US and other countries. China's willingness to save so much reduces the need for Americans and others to save more"

But isn't that exactly the problem? China's willingness to take the place of "saver" in the US economy should (and is) be a bad thing, not a good thing, in the long-run. Sure, on its face it seems great - it allows the US to spend money on things (Chinese things) that it might otherwise not. But it's this free allowance by the Chinese that has partially contributed to the American problem of over-consumption - of houses, of debt in general. Without this allowance, perhaps some of the booming bubbles we've experienced in the last 20 years might not have happened - perhaps recessions could have more easily been avoided.

UPDATE: At least one mainstream economist agrees with me:
"Many economists, myself included, believe that China’s asset-buying spree helped inflate the housing bubble, setting the stage for the global financial crisis. But China’s insistence on keeping the yuan/dollar rate fixed, even when the dollar declines, may be doing even more harm now."