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Can China and the other BRIC Countries Withstand a US Dollar Collapse?

The question that is on the mind of many, is to what extent a US falling consumer demand will affect emerging countries? It is now known that for the foreseeable future US demand for product coming off shore is in a substantial decline. One has to question to what effect emerging countries domestic demand will replace US demand in the world. This cross purposes effect could be exasperated if the US dollar collapses before our very eyes which is becoming more of a possibility. President Obama is borrowing unprecedented amounts for spending programs. The US marketable debt increased to a record 7.17 trillion in November from 5.80 trillion at the end on 2008. Examine the exponential increase in US debt over the last decade. The treasury yield curve, a barometer of the health of the US economy, widened to a record earlier this month as investors bet an accelerating recovery will fuel inflation and hurt demand for unprecedented sales of government debt as earlier reported.
A recent report in Bloomberg also stated that treasuries are headed for the worst year since at least 1978. Financial companies in the Americas had 1.1 trillion losses and write downs since the credit crunch started in 2007 representing about 65% of the global total. The extra yield investors demand to own investment grade US corporate bonds instead of government treasuries narrowed to 1.91 percentage points from 6.03 percentage points this year the report stated. It appears that the US corporate debt is looking more favorable than US treasuries. This certainly does not give a very good grade for the Obama administration. Soon this administration will be forced to tax those US corporations and that action alone will adversely affect investment in those corporations since foreign emerging countries will no longer tolerate a debased dollar contagion. This could eventually alter the way multi-nationals are forced to transact business. This will become more alarming for the emerging countries as they will soon experience a change in US policy favoring more protectionism by the Obama administration thus adding fuel for greater pressure upon the US  currency reserves when foreign bankers are forced to turn to hard assets that cannot be replaced under current economic circumstances. LOL Looking after your money. 

Disclosure: no position