Decent overview of declining US dollar and where it is going...

[JoMoDo]

"Well, the long and short of it is that since the invasion of Iraq began, the dollar has lost some 35 per cent of its value in relation to the European Union's recently floated currency, the euro, not to speak of the yen and the yuan and sundry lesser currencies of the world. In the short run, the depreciated dollar boosts American exports, which become cheaper, and discourages foreign producers to sell their goods in the U.S., for which they would not get less, in terms of their own currency. This can help the U.S. produce more, export more, and import less, which then redresses a part of the problem with the current balance of payments.

The problem, however, is that since the dollar serves not only as the national currency of the U.S. but also as the reserve currency of the world, and as the principal currency for world trade, notably oil trade, everyone wants to hold U.S. dollars and, consequently, roughly 50 per cent of the U.S. dollars are held abroad. The spectre haunting the dollar today is that those foreigners who hold it - as reserve currency, as medium of trade, as a share in the U.S. economy and state debt - would get fed up with its decline and start exchanging it for some other, better valued currency, such as the euro at present…"


F*** a recession, we're heading into an even greater depression than we are currently expieriencing...

 

[m.w.merlino]

This is probably the scariest thing about the presidents choice to plunge us into debt, they just approved another 80 billion, were going down fast.

 

[TOKZTLI]

That's true, even the money hungry portfolio workers are suggesting buying in Euros and investing off-shore and in foreign nations.

 

[miggidy]

So does this mean that we'll soon start using the Euro dollar out here?

I mean, prior to this;
the US dollar was like the currency of the world.
Many foreign countries used the US dollar as bait in order to lure in a big catch.

An example, athletes are often paid in US dollars over in Europe.
No matter what place on Earth the athletes come from....