US is having a myopic view by making China revalues its yuan so that it can rebalance its deficit. First and foremost, US can't rebalance its deficit and bump up its employment. If China revalues its yuan, China will export inflation to the world in this crisis-hit era. Exports will slow down in China causing retrenchments and closures of factories and prices will shoot up worldwide especially in US as there is no cheap production anymore.
There was a consumer research done a few years ago on price influences in US without using China made products and the ensuing outcome was HIGH PRICES. I think US is trying to shift focus away from its own problems and conveniently use China as a scapegoat for all the problems.
Nonetheless, this is NOT the time to allow inflation to creep in or we'll be having another BIGGER problem pretty soon in the unforeseenable future.
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