The big worry for the USA is that the international dominance of the US dollar as a reserve currency is slowly but steadily being eroded. If and when that happens, i.e. if the US dollar becomes no different than the Brazilian Real or the Thai Baht or the Mexican Peso, then run, don't walk, for the exits ! The 'tin foil hat' crowd would tell you that this very point is the true reason that the US has been so persistent in its Iraq / middle east involvement - to stop the Arab oil shieks from deciding to price oil in terms of gold or Euros or something besides the US dollar. Were this to occur, the US dollar would indeed fall off a cliff, the assets of US citizens and businesses would be hugely devalued, and the US economy would quickly fall into a depression so deep it would make the 1930's look like a 'soft landing'.
Bookmarks