Pressure China, Pay the Price

A big rise in the value of the yuan would lift prices for millions of consumers who buy Chinese goods.

Uncle Sam's top economic officials, including Fed chief Ben Bernanke and Treasury Secretary Henry Paulson, recently sat down with their Chinese counterparts for the first of a series of meetings to encourage "fair trade." This is a euphemism for, among other things, limiting our soaring trade deficit by coaxing China to move faster on revaluing its currency, the yuan.

A yuaning gap

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Jeremy J. Siegel
Contributing Columnist, Kiplinger's Personal Finance
Siegel is a professor at the University of Pennsylvania's Wharton School and the author of "Stocks For The Long Run" and "The Future For Investors."