Even that is really not a valid reason as, first of all, that same reason applies to both the arabs and singapore. I give another reason. If I were Trichet what would I lose if Iwere to go out and make a tough speech on the value of EUR, then follow with some action. The price of EUR?USD will correct immediately I am sure.
You're talking about the Marshall Plan right? Well, after WWII, we were relatively unscathed (thank god for the Atlantic and Pacific Oceans) And the rest of the developed world was DESTROYED. We had no choice but to invest in Europe and Japan to ensure future customers. That's how we became the worlds #1 manufacturer and #1 lender. The altruistic displays by our leaders and theirs was for public consumption. Of which, you partake in I guess... Today, oil exporting nations and Asia are overwhelmed with dollars they have gained from export surpluses. What do they do? They buy us outright for gain. What else are they going to do with all those depreciating dollars? It was not done for "friendship." It will only last for so long - we are exporting our inflation to them - and they don't like that. Who needs "friends" like that? Again, every nation for itself. And one day, the arabs will say, hey let's use a basket of currencies or the Euro as a peg, and the Asians (India, China, Singapore, etc..) will say - why sell things to a bunch of broke Americans - why don't we sell things amongst ourselves? After all, we know how to save money and our populations pay CASH. And then we will be more like Mexico and we will roll out the Amero.
Actually Trichet and other central bankers could intervene in the FX market, damage control, this dollar crash is hurting everyone.
Some people have misconceptions. America is the reason for the wealth of Europe and Japan's wealth. As for your looking down on the arabs and singaporeans, I think that you may have been well fed with the propaganda machines to create enemity towards them. If they were really not friends with America, why is it that they send their money in harms way? A thing that even supposedly close friends did not do? I think those who used to say they are America's friends were really just profiteering, and will not care at all to see America economy fall. Our tax dollars were given to Europe and other supposedly friends. And now we have the answer: "this is about money". Give me a break, how about our money that went to them. Is not that money as well? I look at the facts not a propaganda. History will record the real friends, based on their deeds not on their words or whatever.
And they did not do that at all. It cost them little to nothing. Go think now, who are the real friends of America! If you were America and you were in crisis, would you consider someone a friend when the supposedly not-friend is giving while you do not hear from the supposedly friend of yours? Would you not re-evaluate you calculation of who is your friend and who is not your friend?
But it is that "invest" that the supposedly friends are not giving. We are not asking for anyone to give money for nothing. The supposedly friends gave NOTHING (we will not accept charity), but investment is welcome particularly at this critical time. Show me a similar gesture from Europe? The cash that Singapore and the Arabs loaned could have gone somewhere else where it would have been safe and gave better returns. They put it in America because they are friends, and they know that friends should help friends. They earn less, and might even lose a lot, but they did I believe because they believe in the future and friendship of America. That is the type of gesture that those who call themselves friends of America did not do. It has been more than 6 months when they could have shown that support, but they did not.
There are plenty of foreigners willing to invest in America, but they're afraid of getting robbed by the dollar devaluation.