Some comments from the Wall Street Journal website article here (subscription req'd), note that the money quotes are highlighted, but I wanted to make sure and not lose the just of the article and comments:

the yuan's surge over the past two weeks may have more to do with a desire in Beijing to keep up the pace of yuan appreciation than with reaching the seven-yuan mark in time for Mr. Paulson's visit. ...
China also has a domestic reason to allow a faster appreciation of the yuan: accelerating inflation. The consumer price index soared 8.7% in February from a year earlier after a 7.1% rise in January, marking its fastest pace in nearly 12 years. Food prices were a major factor. A stronger yuan could offset some inflationary pressure by reducing the cost of imported products.
....
"I think the People's Bank of China is worried that food inflation could turn into headlines inflation. Wages are increasing quite strongly...and for this reason they have to control excess liquidity more tightly," said Sebastien Barbe, an economist at Calyon Credit Agricole CIB.
....

"A moderate appreciation against a depreciating currency is not an appreciation -- it is a depreciation," Standard Chartered economist Stephen Green said in a note to investors last week.

Tellingly, the yuan has depreciated against the euro by about 4% since the beginning of the year.

With the European Union now the largest export destination for Chinese goods, topping the U.S., the currency's moves will do little to rebalance China's trade surplus or slow the tide of foreign money pouring into an economy already swamped with excess liquidity.

According to calculations by Calyon's Mr. Barbe, the yuan has risen only 4.2% on a trade-weighted basis since it was revalued 2½ years ago."

These are all statements that I have made in class, however I wanted you all (including my students - a link from class website) to see others saying the same things.  The full article may be also found on my class website the  article here.

Also notes from yesterday's Asian markets from the Wall Street Journal article here:

China's Shanghai Composite Index rebounded from the previous day's plunge to close 4.9% higher at 3580.14 on rumors of possible government moves to support the market.

Market heavyweight PetroChina surged 5.2%, Ping An Insurance rose 8.5% and coal miner China Shenhua Energy climbed 6.4%. Baoshan Iron & Steel gained 3.1% after falling 9% a day before on its lower-than-expected earnings for 2007. The publicly traded unit of China's biggest steelmaker by capacity said 2007 net profit fell 2.8% due to higher ore prices.

Again a quote from yesterday's Commodities markets in the Wall Street Journal article here:

Sugar and ethanol millers in center-south Brazil began crushing the new cane crop this past week, with most of the region's mills to start the season by April 15, according to the Union of Sugarcane Industries. The new crop is expected to exceed last year's record, and industry members predict more than half of it will be used for ethanol -- mostly as auto fuel -- and the rest for sugar.

Finally, from the New York Times, February Personal Consumer Spending was flat and inflation too!!:

A closely watched measure of inflation, known as the “core” P.C.E. deflator, rose at an annual rate of 2 percent in February, returning to the so-called “comfort zone” that the Federal Reserve prefers. The January reading was revised down to 2 percent.

Yes, just like I always say - When *I* talk about something, "they" report real info about that something - PCE core deflator this time!!  Take note students - a hint for the Midterm Exam!!