The US Dollar In Trouble

More signs for more beginnings of the end of the dollars dominance. The FED is buying US Treasuries. Whaaaa? We can create money out of thin air and buy our own debt? Then why the heck is there any trouble in our country? We can just print and buy our way out of any-old situation. Right?

Only thing is, the US debt holders aren't thrilled about this arrangement..you know, people like Japan and China that we depend on to buy our debt and fund our Social Security and wars. They start creating crazy ideas like:

SHANGHAI — In another indication that China is growing increasingly concerned about holding huge dollar reserves, the head of its central bank has called for the eventual creation of a new international currency reserve to replace the dollar.

In a paper released Monday, Zhou Xiaochuan, governor of the People’s Bank of China, said a new currency reserve system controlled by the International Monetary Fund could prove more stable and economically viable.

And people like Ron Paul have recognized for years the inherent flaws in our monetary system and are being proven correct.

“People will start to abandon the dollar as current and past economic policies create a steep rise in interest rates,” Mr[sic] Paul says.

“If you are in Treasuries, you will need to be watchful and nimble to time your escape.”

Unfortunately, cashing out will not protect the value of investments, he insists, because “fiat” currencies will all decline over the coming years as measures to try to haul the world economy out of recession fail. “The current stimulus measures are making things a lot worse,” says Mr[sic] Paul.

In my own investment and retirement accounts I am largely in cash and corporate bonds.
The equities that I own are energy related and pay hefty dividends and have done well, after all, they are backed by real assets.