Its hard to see what economic threat we are posing to China in this game of chicken, The lower the dollar does, the better off thier position. Being a manufacturing giant that is planned around the notion of a low currency, they just get more and more markets as the dollar, and therefore their currency, continues to fall. Plus, as they become one of a few number of Dollar buyers, they get massive political leverage over us.

And Europe would love to be sitting there holding the World Currency, so its hard to see the 'chicken' there.

If the Dollar completely collapses, China chuckles and floats their currency (or pins it below the Euro), leaving Japan holding the bag. Europe suffers the devaluation in their central banks, but relatively also gains by the Euro becoming the global reference currency.

Maybe I'm missing something, but I'm not sure if we're playing chicken or just running headlong into a brick wall while China and Europe look on. All in the service of outdsated dogma, I fear.

Davin L.