On Mar 27, 3:28 am, "Frithiof Andreas Jensen" [....]
Interest rates in EUR are higher than in USD. That's pretty fundamental. The
> EUR will climb to at least the level where one gets the same returns - and
> of course the EUR will continue higher as long as Bernanke is spamming the
> world with US paper.
It isn't just Bernanke. The government is borrowing money to buy bombs to drop in Iraq. At the end of the day, the US is left with the debt and nothing to show for it. It would be a different matter if the US was buying production equipment, infrastructure or even education with the money. That would mean that there would be assets to cover the debt so the paper would have a little more backing.
[....]
> Eventually even people as stupid and inbred as the Chinese central bankers
I don't see the Chinese central bank as stupid. They have made the best investments they could given the situation. China is running a surplus.