It’s precisely to prevent this scenario that World Bank President Robert Zoellick recently came out in favor of some new type of gold standard or “international reference point.”
does she support this policy?
She isn't, so its likely that the necessary spending cuts won't happen for two years. The dollar is therefore going to lose 75% of its buying power before 2012. A de facto gold standard will appear at about that time.
But the dollar won't go (much) lower - because the market is forward looking and by 2012 will be banking on an America under Palin. The dollar backed by full faith and credit will return.