First, China's infrastructure HAS been expanding for the last 10 years is true, but ignores the fact that the majority of China is nothing like Shanghai & Beijing, but as you said, villages. They still have along way to go, and internationally is still considered an "Emerging Market."
Second, if you read my post, I mentioned the decreasing value of the dollar hurting Americans, especially those who shop internationally such as buying a $15 burger. I also mentioned how that would correlate in hurting European business. I agree that European business has many different ways to invest and make money, but as I said, losing US business is going to hurt pretty much any country.
If you look over the past 3 years, the Emerging Markets segment has grown at a much higher and faster pace than the European Market segment. Just because the value of the Rupee is low doesn't make it equivalent to investing in Enron! Now THAT was an uneducated comment. Enron would be considered an extreme value, and speculative grade. Investing in India, an economy and country that is growing at an incredible pace, would be wise.
Take this for example: Compare Mutual European (TEMIX) to Goldman's BRIC (GBRAX), which would be a standard comparison of the general Emerging Markets to Europe. You will see that Emerging Markets is growing at a MUCH faster and higher pace than Europe. In fact, BRIC achieved the same amount of growth that Mutual European had over 4 years in one year!
Given that, what IS BRIC made of? 85% Brazil, Russia, India, and China.
70 million people (baby boomers) retiring soon will probably HELP the US economy. Yes, it will drain our social security, but considering that the 70 million isn't going to retire all at once, but rather over a span, and that their retirement could correlate with more spending, and therefore boost the economy in the long run.
Lastly, to summarize, if your money is in a savings account, then yeah you will be doomed regardless of how the US economy fairs. Unfortunately, the majority of American's DON'T invest and don't know how to. Considering the top levels of the American population DO invest globally, they most likely will have nothing to worry about. So in short, don't worry about the Euro dampening the US economy, the US economy is only a small portion of how the US fares as a whole. The downward cycle of the US economy makes us more competitive. If you ARE worried, invest in some International, European, and Emerging Markets and capitalize on your fears.