Yahoo Headlines

Caterpillar to raise prices up to 2 percent

Prediction: The price increases will mainly be in China for their Chinese made product line as cost of labor and other raw materials have gone up. China may get their currency appreciated via localized inflation if they aren't be careful.

Just imagine if China had bought made in the USA Caterpillar products with their export earnings in past years instead of US Fannie Mae and Freddie Mac bonds. China wouldn't have to worry about losing money on the mountain of financial assets. They would have a bunch of earth-movers they need and the USA would have more jobs and consumers for Chinese products.