Here are a few more articles for anyone pondering what's going to happen to the US dollar. The first one is from The People's Daily Online (China, English)

China recently announced a trade deficit of 8.4 billion yuan for the first quarter of this year, the first quarterly unfavorable balance of trade registered by the country in 17 years.

In simple terms, economists explain that a country with a favorable balance of trade is lending money for others, while one with an unfavorable balance of trade is borrowing money.

In even simpler terms, China has been a major buyer of US T-Bills for 17 years. Let's see what happens to the yields once this ripples through the system a bit.



The second one is from the St. Louis Fed. It's from a speech by William Poole, who is President of the Federal Reserve Bank of St. Louis. In it, he tells about one nasty thing that could happen if yields went up and confidence went down.

...For convenience, I’ll refer to Fannie Mae and Freddie Mac jointly as “FF

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