To: Box-By-The-Riviera™ who wrote (58903 ) 12/15/2009 11:11:02 AM From: No Mo Mo 2 Recommendations Respond to "In the 1970s, the US Dollar was supported (reluctantly) by Treasury debt buying out of Europe. In the 1980s and most of the 1990s, the major buyer was the Japanese. At the beginning of the 1990s, the Japanese financial system keeled over under the strain. By the late 1990s, all of Asia went through a near death financial collapse as investments were repatriated to keep the boom in the US (and to a lesser extent in Europe) going. After that, Asia decided that they were going to build up their "foreign exchange reserves" to prevent a recurrence. Over this decade, the major buyers of the debt issued by the US Treasury have been the Asians. Since about 2002, China and India have come to the fore as the major suppliers of consumer goods to the US. While some of these goods have been paid for with huge exports of raw resources by nations like Australia, the situation is different for the US. All of the REAL goods exported to the US over this decade have been "paid for" with Treasury IOUs."
