Isn't higher prices in the US what the Fed is trying to create? If what they fear is declining prices, then a rise in the dollar price of imported goods is helpful to their cause. It will mean Americans are less well off but hasn't the US been living a higher standard of living for decades by virtue of being able to issue an over valued reserve currency?

At some point the Chinese will want to enjoy the fruits of their labour and the only way they can afford to consume their own goods domestically is for the Yuan to be revalued and consequently the Dollar devalued. The US will have to start making stuff for themselves again. I can't see any way around it. Look at the way Sterling is collapsing. We have the same problems as the US but Sterling is not the reserve currency any more so its already in the tank. Eventually the Dollar goes the same way.