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if you're going to invest in foreign-currency-denominated debt, the risk of that currency falling vis-a-vis your own is a normal one.
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That's a matter of scale. 30% on tens of billions is noticeable you know. The US *is* printing money for all intents and purposes. Snow was jumping up and down today saying they'll cut it to 2% of GDP in the next four years, I don't swallow it.
That's the thing. The fundamentals *aren't there*. The numbers don't work, either the government reins in spending bigtime or the shit hits the fan, it really does boil down to that. As it stands the only reason interest rates aren't getting a rocket up the arse is the various asian central banks buying vast wads of bonds, if the dollar keeps sliding they'll stop and if the rate of debt keeps creeping up, as estimated, more and more will stop being willing to finance the reckless financial policies of this administration, a collective vote of non-confidence by the financial community in Bush.