Yuan Revaluation for Dummies

Kudlow Money Politic$ explains today's move by the Chinese to revalue the yuan.
Is it as simple as Chinese goods become more expensive and U.S. goods become cheaper?
Not quite.

On the China side, a major revaluation would slow their entire economy including their purchases of American technology, machinery, commodities, and capital goods thereby damaging our economy as well. Then, too, what goes up can come down. Creating China currency instability could just as easily lead to a large fall in the yuan’s value as Chinese savers switch to gold, dollars, or Japanese yen and foreign investment inflows consequently dry up.

Read the whole article here.