Whither the US Dollar?

At least China thinks so (Asia Times via Instapundit). China appears to be moving its investments into short term US treasuries. Investing short term suggests China is concerned real interest rates (real interest rates being stated interest rate less inflation) will fall even further (with interest rates hovering near zero - this really isn't a good thing).

Fun times. As someone else pointed out, the people who have really been harmed in this debacle are the people who saved diligently and invested conservatively. As Glenn Reynolds points out, this also suggests a lack of confidence in the US Administration's budget.