<p>It is foreign investments & foreign trade the influences the dollar exchange rate. </p>
<p>The U.S. had for a time been the No.1 destination for foreign investments. But today, few people want to invest in a country with exorbitant taxes and the business/commercial and political freedoms are not really as good as what they preached, especially after bush administration passed a set of so called “Patriot Acts”. they basically obliterated many fundamental rights ppl have in a democracy. They are not yet a military state, but not far from declaring marshal laws. If you happen to own any U.S. dollar dominated assets, you know how much value you’ve been losing since 2002. Even canadians assets will be better considering the green back lost some 40% of is value, former glory. </p>
<p>China seem to be a different story. Most indicators seems to be good. and if you invested in some hot commodities or real estate (in beijing, shangai) in china two or three years ago, you would have made BIG profits.</p>