Is the world economy choking on American dollars?

In the Sunday Telegraph Liam Halligan writes a perceptive article on the imbalances of the world economy.
With cheap American dollars used to buy cheap Chinese exports there is now the problem of the "carry trade" with people borrowing the low yielding greenback to buy
higher yielding assets. This is sowing the seeds of the next world crisis.

On the same page Ambrose Evans-Pritchard notes that Germany is hiding its bank losses
while countries are willing to bankrupt themselves buying Asian goods. Also, Ambrose-Pritchard notes that the main deficit countries are the United States with $628bn, Spain with $109bn, Italy with $62bn, France with $58bn, United Kingdom with $53bn and Greece with $42bn.

The Chinese are unhappy accumulating depreciating dollars but don't seem to want a free floating yuan or to turn away from exports and expand their domestic
economy.

With the U.S banking industry in a pretty bad way and healthcare reform dividing the country, the new Obama administration seems to have lost a lot of goodwill very quickly. When a million people attend an anti-Obama rally in Washington that is quite something.