How A Strong Chinese Currency Affects the World?... Michael Pettis explores the answer... "The Chinese new year has only just started, & already trade tensions are ratcheting up. This is perhaps appropriate — astrologers tell us that the year of the Tiger is often a year of instability & conflict . The timing of various domestic political events in the US, China & Europe will make it harder than ever..." concludes that the only way out is a global program in which all major currencies take concrete measures to work out complex export, trade balance & currency issues... "Of course the cynic in me says getting a global solution will prove impossible. Each country that benefits in the short term from stonewalling on any aspect of the complex adjustment process will do so. So I guess that just leaves trade war."... http://mpettis.com/2010/03/how-will-an-rmb-revaluation-affect-china-the-us-and-the-world/ (4*)