The US dollar is no longer based on precious metals, so it has value only as a promise of payment. It's only worth something so long as the market accepts it. If this long-term trend of increasing national debt continues, at some point the largest bond holders will consider that the United States has become a bad risk and will begin divesting themselves of dollars. The world market value for the dollar would then fall.
Think of what that would mean in the case of oil imports. If the price of oil suddenly climbed to say, $100 per barrel, what would that do to the American economy?
The suppliers would probably want Canadian dollars as payment because our dollar would head for the toilet.
You don't need to be and expert. When you can run down to your local electronics super store this afternoon and pick yourself up the latest big screen TV for no money down, no interest and no payments for a full year, ask yourself if this is an indication of economic strength and recovery, or if it represents economic weakness and desperaton.
Richard W.