Why the Dollar's Fall is Bad for Everyone

[Kellanved]

As the United States pushes further and further into debt, the country is financing its budget with infusions of a billion dollars a day from Asia. But if China and Japan started trading in euros instead, the dollar could collapse. That would be bad for the US and Germany, where economic recovery is dependent on exports.

The logo on one of the classic T-shirts on display in the souvenir shop at the Chicago Futures Exchange reads: "Pigs are trendier than you thought." For generations, the Exchange's building on Wacker Drive has been famous for trading in pork bellies.

These days, of course, a different commodity has become the focus of speculation: On the floor of the exchange, currency traders, in their brightly colored jackets, are betting billions on the future of the US dollar. And if the traders' predictions hold true, it's not exactly rosy.
...
The economists are outdoing each other with bleak forecasts. Thomas Mayer, chief European economist at Deutsche Bank, believes $1.40 is realistic, while his counterpart at investment bank Goldman Sachs, Jim O'Neill, expects an exchange rate of $1.50. Finally, US economist Fred Bergsten is boldly talking about rates of $1.80 and $2.20. Everything seems possible.
...
http://service.spiegel.de/cache/international/spiegel/0,1518,328487,00.html

[indepat]

1. The dollar falling like a rock and skyrocketing oil prices are but small

prices to pay to keep us safe and liberate the Iraqis.

[MissMarple]

2. On some program today, foreigners holding dollars could start to sell.

That doesn't sound like a good thing. Would that happen? I didn't hear all of what they were saying.

[Martin Eden]

3. the real HOSTAGE ...

... is the U.S. economy.

With our massive budget and trade deficits we're way out on a limb, hoping the foreign banks propping us up won't drop the dollar when it loses value.

Meanwhile we're sawing at the limb ourselves with an arrogant foreign policy that will give our money lenders satisfaction when we fall.

[The Zanti Regent]

4. It doesn't matter, we have Jesus

and I'm sure that the assholes at the PRESIDENTIAL PRAYER TEAM will pray all the deficit away too...

(SARCASM MODE NOW OFF)

[tsuki]

5. We have Jesus and Walmarts...

(sarcasm mode permanently on now...only why I can make it through)