The problem with the US is that they are a consumer economy. They have very little to no manufacturing capacity as they lived off the strong dollar for so long and imported everything.
If the US Dolalr continues to lose ground against other currencies incl the Yuan, what will happen to Chinese imports and conversely Chinese GDP, as the US bar far and away is the biggest consumers of Chinese products.
IMO US Dollar is close to breaking down and out of its decending wedge, and it could happen within the next week and I dont think the markets will like it.
