Chinese central bank member says that the US will be safe for the next 12 months, but eventually investors will realize that the US is in much worse shape than Europe

Li Daokui, a member of the Chinese Central bank's monetary policy committee has said the obvious, that European woes have caused global investors to take their eyes off the US market.  He is of the opinion that U.S. bond prices and the dollar would fall when the European economic situation stabilized.

The good news is that the U.S. dollar should be a relatively safe investment for the next 6 to 12 months because all eyes are on the Euro and the Euro zone's fiscal crisis.  He also says that America's problems are much worse than Europe's and that once people realize that, they US debt and currency will take a tumble.

But we do have 12 months....  Via Reuters

"For now, market attention is still on Europe and for the coming 6-12 months, it will not shift to the United States," Li said, when asked about U.S. President Barack Obama's plan to extend tax cuts for all Americans.

"But we should be clear in our minds that the fiscal situation in the United States is much worse than in Europe. In one or two years, when the European debt situation stabilizes, attention of financial markets will definitely shift to the United States. At that time, U.S. Treasury bonds and the dollar will experience considerable declines.


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