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Fear, as it has historically done, initially drove the buying — fear of inflation and a vulnerable dollar.
A red rag is India's weak government budget and rather high public debt at 80% of GDP but here again, the highly vulnerable dollar loans are paltry by Asian standards.
What American politician has ever lost an election by blaming foreigners for a problem made in the U.S.A.? Expect more China bashing, more mercantilist policies and an increasingly vulnerable dollar.
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The victims of these crimes are diffuse, invisible, and often vulnerable: every dollar paid in bribes tilts the scales further against the most unfortunate in societies where fairness frequently goes unprized.
However, a rise in the international value of the euro will make it tougher for the single-currency zone's exporters as well as it making it more vulnerable to dollar-denominated imports.
Toss in a still-vulnerable U.S. dollar and an inverted yield curve (i.e., long-term rates have fallen below short-term rates), and the small but increasingly vocal minority that has been predicting a recession would appear to have quite a bit of evidence on their side.
A reserve currency is supposed to be a store of value; by running a huge current-account deficit America has left the dollar vulnerable.
Superstars with manicured images are vulnerable to million-dollar shakedowns when someone seeks to expose an alternate reality.
But stocks of automakers and companies in the basic materials sector are vulnerable if the strong dollar pushes a domestic economic recovery into 2002.
As small cities, they would be more vulnerable should the Canadian dollar plummet in value as it did in the 1990s, no matter the local passion for N.H.L. hockey.
That makes the dollar highly vulnerable to the whims of investors.If growth in the United States, and hence profits, slows sharply, American assets will start to look much less attractive to foreigners.
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CEO of Professional Science Editing for Scientists @ prosciediting.com