I was sure they would gun the dollar and the ten year treasury rate after the announcment last night that China had comitted ...in theory to continue to buy our paper.

But I was stunned to hear that the students laughed at the Treasury Secretary when he said that US dollar investments were sound.

That says it all. The soundness of our debt draws laughter from students....but the sheeple in America couldn't tell you squat about how much we need those students and their government to keep buying our junk....

They will have a better idea by the end of the year as higher interest rates smashes into the housing recovery and inflation smashes everything else.