The most worrisome global economic trend

FRONT PAGE: "China Losing Taste for Debt From the U.S.: Key Lender Finds Uses for Money at Home," by Keith Bradsher, New York Times, 8 January 2009.

The current breakdown of global reserve currencies sees the euro at 28% and the dollar at 64%. The Chinese currently hold, it is estimated by outsiders, a 70-30 split in dollars and euro, meaning they're high on dollars.

With Obama predicting trillion-dollar deficits "for years to come," let's hope his administration is smart enough to realize how much it may backfire to piss off the Chinese with a lot of "fair trade" agenda. America has 7-8% unemployment and China's got about 700m living in desperate poverty, so let's not pretend it's a level playing field.