patrick.net

i am investing in USA.

note : not an investment advice for you.

Compared to what? It has actually weakened slightly against the Euro this year.

We may be living in some Fruityville horror show nightmare, but even in an augmented reality where the Chinese own everything.
The dollar is still king!

The thing everyone forgets when the dollar is sagging, is that if the things are tight with the dollar, then things are even worse for all of the rest of the worlds currencies.

Yeah that is the problem here. China might hold a huge amount of treasuries, but their entire economy is based on building junk and exporting to the west.

They are trapped-unless they can raise their standard of living and develop a market similar to ours. While it is growing by leaps and bounds, it is tough, when your entire model is built on cheap labor and creating junk products at cheap prices. The US on the other hand just borrows-they can default at any time-plenty of countries have done that.

Most of Europe is a basket case. Some countries liek germany and Switzerland are ok. In this case, I am glad the republican austerity principle did not take hold here-they have had devastating impact in Europe. Obama's way is the lesser of two evils-though I would like to see some tarriffs against the Chinese for artificially holding down their currency .

With China moderating, the commodity block countries are slowing down. Sad to say , we are in the best position. If some good leader comes-he can always clamp down on imports and develop our own industry-that is a big if. But that is the benefit of being a net importer and having a huge home market. Debt is debt and as many countries have shown before -one can always default. Yeah the itnerest rates for the rest of us will soar-but we do look ok when compared to many countries.