That's a question I submitted while in the process of researching my final paper for Alfred Aho's advanced compilers course at Columbia University. In the paper, I discuss why compiling Python to C is difficult, and present some of the process that PyPy uses to make the translation happen for RPython.
https://www.youtube.com/watch?v=GjnRLG8ATn4
https://www.youtube.com/watch?v=kkt_BtR9Kzk
Also, for those going, I believe he'll be talking about this in his keynote at PyCon.