Further to our last, Chuck Butler in The Daily Reckoning points out that China's trade balance with America doubled last month, and the Renminbi has already risen 8% against the dollar since de-pegging 2 years ago.
The exchange rate could alter far more before China lost its pricing edge - just Google up the phrase "China price". Besides, Western industry is getting to the point where it couldn't take up the slack. We have a shortage of skilled labour, and even our factories are being shipped abroad.
China's US trade surplus was slightly over $16 bn in April - oddly enough, just about the same as the increase in Federal Reserve credit.