You are warned!-----Ballooning Federal Deficits Give An Opening To Chinese Yuan - Peter Morici

Ballooning Federal Deficits Give An Opening To Chinese Yuan - Peter Morici: 

"...international investors have started piling into bonds denominated in Chinese yuan, now perceived as safe, to earn higher yields.
The foreign currency value of the dollar has weakened and investors are fleeing to gold too.
...The lessons from all this are that the Fed can’t raise interest rates when it chooses to combat inflation. 

It must finance huge federal deficits that weaken confidence in the dollar, and the Chinese yuan is emerging as a genuine rival to the dollar.
Fed monetary policy independence is gone, massive federal deficits threaten the dollar’s status as the global currency, and the Chinese yuan is waiting in the wings...Read all.