With cash-strapped companies coming cup-in-hand to their equally cash-strapped governments, the world over is looking for Warren Buffett-sized checkbooks to help ease the credit crunch.

Increasingly, the world is looking to China and its $1.9 trillion in reserves.

Should China whip open its gigantic checkbook to bailout the global financial system?

Does it even want to?

China’s been burned before with its investments in the U.S. financial sector. It has a 9.9% stake ($5 billion) in Morgan Stanley (MS:NYSE) that has been pummeled by the industry-wide downturn. And some Chinese leaders believe that the U.S. and Western Europe should clean up their own mess.

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Major markets around the world are being sucked into the black hole that is the U.S. economic crisis.

There are those that say we need to share the blame, and yes, there are banks in the UK and in Germany, and other Western economies, that have wandered down the same path and ended up in the same bramble bush… But the U.S. financial system has really become the black hole of the global economic universe.

Just look at all the cash that was thrown into the system: $12.5 billion injected into Citigroup by the government of Singapore and the Kuwait Investment Authority; China Investment Corp. paided $5 billion for a 9.9% stake in Morgan Stanley; Merrill Lynch got $6.6 billion from Korea…

And that doesn’t include the investments in other institutions across the pond, like the investments in Barclays by Singapore’s Temasek and the Qatar Investment Authority, or the Credit Suisse, Standard Charter, and UBS investments from SWFs around the world.

As you can imagine, these folks aren’t happy that their investments have all but disappeared. They’re not likely to make any similar investments in the near future, either.

And that leaves a gigantic wound in the financial machine… A black hole that continues to suck investor’s cash down a never-ending drain.

Thought the Dow would hold at 10,000? It didn’t.

Think the $700 billion “Death Star” bailout will contain the problem to just the U.S.? It won’t.

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Now it’s China’s turn to publicly humiliate America.It’s one more display of our Cold War defeat that we seem to sweep under the rug.

This story in the New York Times reveals how China dissed America about our dim-witted economic policies. It’s hard to imagine this kind of attack ever taking place a few years ago. It truly reveals the shellacking we took in the Cold War from China and Russia.

The U.S. has been faking it for decades that we won the Cold War. We even tried to dictate terms of China: the valuation of the Chinese renminbi, state subsidies and food safety.

What America was really telling China is that no Communist economic model is capable of trouncing a free-market democracy. It sounded more like good old-fashioned Commie-bashing than enlightened 21st century trade negotiations.

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For Russian citizens, bread lines have given way to conga lines at one of the hottest resorts in Turkey.

The commodities boom in Russia is allowing the former Soviet citizenry to enjoy the Life of Riley that Americans once took for granted.

Instead, we now get the Staycation.

Our former Cold War enemy enjoys water aerobics; we park a beach chair under the backyard sprinkler. Our former Cold War enemy hops a plane to some hot resort; we can’t afford to back the SUV out of the driveway. Our former Cold War enemy savors caviar by candlelight; we chow down weenies at the Wal-Mart.

But don’t worry, it’s OK. You’re taking part in that new American sensation called the Staycation. While Big Media would like you to believe that the Staycation is a good thing, it really is just another clue that we lost the Cold War to Russia.

Rather than face up to our Cold War defeat and invest accordingly, we let Big Media package our economic house arrest as a cheery Staycation. You’re not poor; you’re on a Staycation. Sure, go ahead and spend $70 on the family to see the latest Indiana Jones remake set in a time when America ruled. Back then, the Dow Jones Industrial Average really meant something.

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