Safe IMO that is exactly the reason no matter what the US says or does ... China will continue to peg fairly close to the US $. The US citizens courtesy of Walmart and big box stores reaped the benefit of hard working Chines people who made less than a subsitence income. Increasing the yuan has two negative impacts on China ... their exports are less competitive, there reserves are worth less. While Japan can stop the increasing value of the yen without concern ... those evil industrious Chinese are playing unfairly ... ROFLMAO, tell that to the middle east, and central America where military might was unfairly used by the US for profit.

In some respects it is the other way around ...China realizing they have bad debt will accept their portion of the losses for the devalued dollar if and only if the US admit defeat as the world's economic super power. They have to throw in the towel and for the peoples sake the sooner the better. Contrary to popular opinion while US continues this losing battle, China continues to export and reduce the bad debt you most correctly point out.

They are divesting, adding gold, rare minerals, new exotic materials while the US continue to attempt to avoid the inevitable financial collapse that occurs as a result of the out of control spending from the individual to the government on somebody elses nickle.

If I was a US banker I'd be getting awful nervous about the backlash of the government further bankrupting the country and the citizens reaction to their wealth when their is nothing left for the masses thanks to hyperinflation+. There is no way I'd continue the greed ..I'd take the money, run, change identitys and names.

Fortunately I'm just a poor sod doing the best I can and stocking up to take care of family and as many as I can before departing this earth ... We never had kids, so I do not have the avg emotional attachment of people my age to my future and obviously my offsprings future.

GLTA ... it is becoming increasingly ominous and the collapse is inevitable ... be it sooner or later ... North America is doomed.

A very kewl furistic movie albeit somewhat dated giving a glimpse of what the future may very hold is Soylent Green ... starring Charlton Heston adn Edwarg G Robinson's last movie.

I hope everyone takes the time to watch it or read the book .... it is quite insightful and mentions such things as global warming.

All the best

orgy