[jyl]

Interestingly enough, not only is USD appreciating relative to other currencies but it is appreciating relative to most assets - property, stocks, most commodities, many types of goods (hence inflation is virtually zero, if not negative), etc.

This isn't anything to celebrate, as it reflects how weak global economies are.

The big bugaboo is "what if the Chinese stop buying treasuries". Some argue that the Chinese have no realistic alternative to buy, which I think is right. They are as dependent on the US economy as we are. But I'd like to see an analysis that convinces me the Chinese will have enough ability to buy.