The RMB was 'depegged' as a press release but is only allowed to float in a narrow range of 0.3%. (http://en.wikipedia.org/wiki/Renminbi#Managed_float). Most of the increase in value from 2005 was a command decision from the CCP, not a result of market float.
At any rate, 15% over 5 years is less than 3% inflation. That's low inflation.
I don't think borrowing rates will stay this cheap over the next 2 decades because eventually the private sector will catch up to all the public jobs we've been shedding under socialist obama and GDP growth will resume, creating inflationary pressure again. But for now, and while we're either losing or barely holding even on employment over the next year or so, the interest rates will stay low. The second they touch 3% or 5% (normal inflation range), the fed can start jacking up their interest rate to compensate.
In short: It's ok, our currency is not going to collapse.
I agree the USD is not going to collapse. It's going to continue to devalue at an accelerating pace, as it becomes increasingly less of a global reserve standard.
Interest rates on US debt will climb from here forward.
The Fed will increase its rate of debt monetization as the US economy flails, likely from $85 billion per month up above $125 billion per month in the coming year.
The Fed will also never be able to actually unwind its portfolio, as Bernanke has begun admitting.
The dollar will have a severe crisis of confidence over the next decade, but it won't collapse.
Of course interest rates will climb -- what else are they going to do from 0.1%?
People have been making your predictions since January 2009. When's it going to start?
My prediction is specifically that inflation won't start until growth starts, at which point it's really much less dire than the picture you're painting.
At any rate, 15% over 5 years is less than 3% inflation. That's low inflation.
I don't think borrowing rates will stay this cheap over the next 2 decades because eventually the private sector will catch up to all the public jobs we've been shedding under socialist obama and GDP growth will resume, creating inflationary pressure again. But for now, and while we're either losing or barely holding even on employment over the next year or so, the interest rates will stay low. The second they touch 3% or 5% (normal inflation range), the fed can start jacking up their interest rate to compensate.
In short: It's ok, our currency is not going to collapse.