"Did any of you think that it is a deliberate move by the Fed to redress the US trade imbalance by keeping interest rates low and thus pushing the dollar down? It is a risky gamble because it also means that large US Treasury securities holders (e.g. China) will experience a decline in the value of their reserves.

But this is intended - the US Treasury is trying to "push" China and the other large US securities holders to shift some reserve assets to the Euro."

If this is true then I suppose that we are in for a quite an expansion of inflation. We have relied on China and others to buy our dept. for quite some time. If they are not buying then we, as US taxpayers, will have to actually pay for our own dept. Hold on to your butt holes.

But, I suppose, inflation will make current dept. look cheaper.

Its all politics. Sorry as it is.