>>the EU and East Asia would
>>pull the current account trigger on the US
>
> Really? 1) What else will they do with their cash? and 2) Why would
> they do anything that would hammer the value of their existing
> holdings?
(1) Boost internal demand and park the remainder in high-growth Chinese, Vietnamese, Korean, Russian and Eastern European markets.
(2) If the US dollar depreciates, other currencies appreciate. The euro is already here, and an Asian currency unit is on the way.
-- DRR