Buy American!

China does. The Saudis too. Loaded with dollars, they are buying U.S. assets. Is that good?

Over the course of this year, China's government will find itself with more than $300 billion in new foreign-currency reserves, mostly dollars, that it will have to park somewhere. That's in addition to more than $1 trillion already in the bank. The oil-exporting countries of the world are in a similar predicament, with a trillion petrodollars looking for a home. Japan's got a trillion bucks lying around too.

This is the flip side of the gargantuan trade deficits ($765 billion last year) that the U.S. is running, the result of high oil prices, Asian manufacturing prowess and our spend-and-borrow mentality. That...

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