China is expected to let their currency rise against the dollar in a few months. Cheap imports and outsourcing of jobs to China has kept inflation low for the past few years. Might we expect a spike in inflation soon? I don't spend alot of time thinking about such things, but my hunch is that we are about to see a huge jump in the inflation rate over the next 12 months. Seems that everything is in place for the perfect storm in the currency and fixed income markets. I can envision a number of doomsday scenarios next year in the mortgage and housing markets. I'm a stock guy so i don't know much about these things. What do you currency folks think?