"While it is fixed, there's no reason to switch from dollars to yuan, but as the yuan begins to climb fewer and fewer banks or even individuals will want to hol

"While it is fixed, there's no reason to switch from dollars to yuan, but as the yuan begins to climb fewer and fewer banks or even individuals will want to hold the dollar and our savings will dwindle due to the massive inflationary effects. " Actually, this speaks to me personally. The yuan is not really fixed to the dollar permanently - it's been climbing gradually over the past several years. As an American in China, I have done just as you have said - I've gradually moved as much of my cash to RMB as possible and enjoyed each time the gov't raised my purchasing power back home. As I now operate a business here and am paid in RMB, I personally look forward to it happening again in the near future. Also, I think, at least in the short term, you are right. Increasing the value of the yuan will noticeably damage the average Joe's quality of life back home. All those little 'made-in-China' things that you buy without even noticing will suddenly become more expensive. Which means you will get less of them. Which means you will have less of the stuff that you are accustomed to having. In the long term, I think a floating Yuan is probably healthy for all parties involved - for the US, because some of the imported Chinese goods will be produced back on home soil and for the Chinese because it will foster more domestic, service-oriented consumption (i.e., a modern economy).