Do you really beleive that the US will default by not raising its debt ceiling? C'mon. Polical posturing - nothing more.
Also do you think that Bernanke will not be pressured to enact QE3 with the looming US Presidential elections next year? The president needs unemployment to come down to be re-elected - there is no way they can affect this meaningfully in a fiscal capacity, therefore, more QE.
As for all these end game conspiracy theories about China's dominance, I think that China will be a superpower along with the US but this doesn't mean the US will fade into poverty or obscurity. The US economy will turn with the housing market. This will most likely take another 2 years to occur. Consumer confidence will return quickly once these forclosure backlogs are cleared. The rest will be just buying time until this occurs.
