Also Numan,

What other option do you have other than US treasury bonds, notes and bills as a secure investment in the world today?

Euro backed government securities have not picked up as it was hoped when the EURO was introduced which makes sense. It's easier to trust 1 government than 15-25 different governments working toghether.

Also, China tends to play political games when it comes to their monetary moves. And let's not forget that the Yuan is not quite a market based currency yet. It has a fixed band (range) and it is only allowed to fluctuate in that range. That is why products made in China are cheaper than anywhere else. The government over there willingly has kept the Yuan weaker than it actually is.

The world economy depends on 1 thing and 1 thing only. The belief that the US government and the Dollar will always be there. Without that assumption there would be no global economy.

A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb

The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond