flation may force China to hike yuan — irony alert

After all the years of Bob Zoellick and other BushCo flacks trying to jawbone China into letting its currency rise in value against the dollar, the specter of more U.S. inflation coming across the Pacific and adding to China’s own may ultimately produce the desired result.

Beyond that, this may be a gift horse that ain’t the best gift for us in some ways.

Inflation worries may push Chinese environmentalism further on the back burner, for example.