Fleet Street Letter’s Ben Traynor says China’s domestic market will insulate the economy from a fall in demand for its exports. Strong local consumer and investor confidence undermine the theory that China will be shot down by the global downturn. Ben says this is good news for Western investors looking for growth while their local economies stagnate.

Over in London, Fleet Street Daily’s Ben Traynor says the dollar’s recent rally won’t last long.

Foreign governments are increasingly twitchy about holding dollar reserves or maintaining dollar pegs. But more importantly, the Fed has shown that it is more concerned about economic growth and safeguarding the financial sector than it is about inflation.

Ben says that by neglecting the threat of rising prices, the Fed is sending the buck down a slippery slope…

Well, well, well! Mervyn King has changed his tune. The Bank of England Governor has been at pains this year to show how serious he is about inflation. Those of us who read the Monetary Policy Committee (MPC) minutes felt we knew which side of the hawk-dove divide King was on.

Many investors will want to avoid Russia right now. And they’ll definitely want to avoid Georgia.

Two bits of news illustrate ‘the squeeze’ taking place in Britain. I’ll get to them in just a moment — and I’ll tell you what you can do about it. But first, what is ‘the squeeze’?