According to MarketWatch.com, China is considering a move away from linking the Yuan to the dollar

The Federal Reserve and Treasury have pumped an ungodly amount of money back into the economy, which raises serious concerns about future inflation, but for now, much of that money is stuck in the banks and velocity is extremely low.

So what have some city governments and businesses done to combat this? Well, they’ve decided to print their own money. MSN Money highlights one such example:

Many people wonder what makes gold special as a store of value. When inflation fears set in, people flock to gold. One answer is that the dollar used to be backed by gold. An even better answer I will leave to Judy Shelton, an economist and director of the National Endowment for Democracy:

As the jobless recovery rhetoric continues by the federal government, many have braced for October unemployment figures in the double digits. The Department of Labor released the latest unemployment data today, confirming those double digit concerns. U.S. unemployment hit 10.2% in October, up from 9.8% in September, the highest since April 1983.

As of today, few things would be less appealing in your portfolio then dollars. As the Federal Reserve pours liquid-ity into the economy through TARP, stimulus and bailouts, and the Federal Government runs record deficits, interest rates stay artificially low. Depressingly low. In fact, a quick surf of Bankrate.com tells me the highest yielding money market account currently available (MMA) is 1.81%, while the average yield comes in at a whopping 1.113%. (1) That means if a person has $20,000 of hard earned money stuffed away in a MMA, he or she will earn roughly $30/month in taxed income. Nice.

Real GDP has retreated 0.7% in the second quarter of 2009. The national unemployment rate ticked up to 9.8% in September, from 9.7% in August, the highest since 1983. The underemployment rate has climbed to 17%, the highest in 16 years of counting the metric. The dollar is down 10% to a basket of currencies off the March highs. Once again, during this tumultuous time, in an epic struggle to scrape by and preserve wealth, one question rings in our ears: how is the current economic climate affecting pretty girls? (1) (2)

Gold bullion futures touched a record high $1,045 in yesterday’s trading session in New York. If you believe in stock indexes breaking through resistance points, this may be just that for bullion.

Economic historian Niall Ferguson and James Fallows discuss the Chinese reaction to U.S. fiscal policy. In short, many in China see U.S. fiscal policy as out of control and the dollar heading for major depreciation.

The drop in the trade-weighted dollar index was led by the dollar’s 16% depreciation against the Canadian dollar, and a 12% decline against the euro. So watch for traveling Canadians towards the end of the summer; it’s getting nice and cheap for them to come visit.

Social costs are not being reduced by the bailout, they’re being dispersed: to the taxpayer, to everyone who earns or saves the U.S. dollar and to unborn generations of Americans.