Most of the industrialized world don't tie their currency to the dollar. Most countries float their currency and how the currency does depends on the country's economy condition. England's pound sterling is not tied to the US dollar. The Euros isn't either. I think you misunderstood me. The Yuan had the exact same value as the US dollar. The value of the Yuan depended not on the Chinese economy, but on the US economy.
The home values dropped faster than I have ever seen before. Some homes lose 40% or more of their value. So it wasn't all people buying more house then they could afford. I agree the government and lenders should have required 20% down and a good debt to income ratio.
I talk about Russian oil because no one else does. Yes there are oil producing nations not in the Middle east.
I think you make a mistake to discount India. How do you think China started out. I have met a lot of Indian people; the education and focus on math is strong there. Most Indian people that come to the USA get jobs as engineers. I know there is crime and proverty there, but if you have nothing to lose you have everything to gain. Also the US has a lot of crime and proverty too. Here is an interesting article on Indian and China. http://www.businessweek.com/magazine...4/b3948401.htm
There is proverty is Sacramento, California. This is a picture of the tent city these people are now without homes.