Well, the "carry trade" is not exactly new (people used to do it with the Japanese yen). The "new" thing here is that it leverages the dollar's decline and historically low interest rates:
http://www.ft.com/cms/s/0/9a5b3216-c...44feab49a.html
HINT: The carry trade also explains why, despite overall weak fundamentals, the stock market has been going berserk lately.
Steps:
1) Borrow US dollars at historically low rates (read the article for effective interest rate... it will blow your mind) -- if the US dollar drops during the loan period, better WIN for you since you have less to pay if you buy assets that go up in value.
2) Buy foreign assets that can go up in value in one of two ways (normally BOTH): the currency behind the asset appreciates against the dollar AND/OR the asset goes up in value because of other people boosting up the value due to the carry trade
3) Pay back your loan
Rinse and repeat