Sorry V that I didn't respond to this sooner. First off let me preface this with the fact that I'm no economist. In fact I subscribe to the theory that if you laid all the economists in the world end to end you would never reach a conclusion. If the Chinese let their currency float it would raise the price of their goods and therefore make Chinese goods more expensive and allow for other countries to compete with the Chinese. Literally a supply and demand issue. When the supply of a good or service increases the price (in theory at least) should drop and when the demand increases the price will increase. The downside for the Chinese is a decrease in demand for their goods and also a major drop in the dollars that they will receive back from all the money they've lent to our friends in Washington. My take on China is that there is no way any American company can compete on a price basis with any country that pays its workers a few cents an hour, has no unions, has no safety requirements, and has basically no pollution laws.