Paul Krugman blogs about China's currency problem, a recurring theme in his column, and says that China is destined for Nixon-era inflation unless it balances and appreciates the yuan.

And why hasn't China allowed their currency to appreciate? Krugman says it is "in part because of the political power of exporters, in part because it now views defying US demands as a way of upholding national pride, in part because, I believe, there’s a lack of clear macroeconomic thinking in high places."

ManufactureThis thinks that China's currency undervaluation is a problem, too.  Check out our ad encouraging President Obama to hold China accountable for currency manipulation. 

Read more.