Questions: Positioning for a Possible Currency Collapse

[Mike03]

The dollar apocaplyptics (of which I am one) have been theorizing about what might trigger the collapse of the currency. I’m wondering if that process began November 3.

Is it fair to say that if Asia and the UK were to stop purchasing U.S. equities at their current pace that this could put our economy into free fall?

Question: What would the motivation be for Asia and the UK to continue to purchase our treasuries, since there is no confidence in our ability to repay our obligations? The re-election of Bush would seem to say to the world, “Deficits don’t matter and we will continue to spend without a care in the world.” Unless there is something I’m not seeing, why should other nations invest in the U.S. at this point?

Question: What effect would it have on the U.S. economy and Dollar if China were to unpeg its currency from ours?

Last question: Regarding this ongoing debate between the hyper-inflationists and the deflationists, any guesses on who is right? I’ve been told deflation is “out of the question” but there are some bright people who say it is possible.

Is anyone here strategically hedged against the collapse of the dollar, and do you have any strategic advice for others? I’m invested in funds that are inversely correlated with the dollar, and in precious metal stocks, but I’m worried this is not enough. I'm thinking of allocating more of my portfolio to these instruments, but worried it could be a mistake. I’m quite anxious about this and would appreciate opinions and advice.
Thanks,
Mike