IMO if the US wants to see China dramatically appreciate the price of the Yuan, they better crack open the vaults in Fort Knox and return China its money in gold. (yeah I know they probably already lent them their gold anyways and their isn't any now). China would have to be off their rocker to allow the moral hazard of the USA and the Euro zone managing their economies completely irresponsibly and then reduce the value of foreign reserves held in US $'s and E$'s by appreciating the value of their own currency. It is not going to happen.

The horse has to go before the cart in China.

Since the US and Euro zone is just as unlikely to provide gold in lieu of reserves as China is to appreciate their currency dramatically ... the stalemate will continue ... The US can not starve themselves of China's cheap goods and labour without hyperinflation ... they don't even have manufacturers themsleves to produce the few goods the American public can still affoprd as they struggle with near 20% real unemployment and over 25% of their most valuable investment about to be foreclosed. The USA is an economic laughing stock and only can export war. Good luck against the Chinese on that one.

The continued and ongoing degradation of the American way of life is at its infancy and will continue to move full speed ahead.

the prophet