What if the Yuan Falls?

Jim Chanos asks this question on his interview with Charlie Rose. What would this mean for investing? Commodity prices would collapse along with demand from China.

Some evidence for this opinion comes from Bloomberg, as China May Post Trade Deficit. Typically, if a currency floats, a trade deficit will cause it to fall. So if China revalues, they may have trouble maintaining it. Another thing this signals is a reverse of China's U.S. Treasury buying binge.