[GodGunsGuts]

Yes and no. Much of the dollar's decline is our own doing (the triple deficits). On the other hand, there is a cabal of enemies (Red China, Russia, Eurasian Alliance) that are actively trying to undermine the USA in an effort to create a "multipolar world." They are attempting to do this both politically and economically. Solution: we need additional tax cuts, and even bigger CUTS IN FEDERAL SPENDING. Americans also need to stop going into debt, and START SAVING AGAIN. Finally, this will probably not happen, at least short of going to war...but we need to cut off all aid and trade with COMMUNIST/slave labor economies. Not only is it immoral to trade with them, there's also no comparitive advantage in it for the USA.

[mr_hammer]

"Not only is it immoral to trade with them, there's also no comparitive advantage in it for the USA"

... ever notice how immoral behavior always yields undesirable results. I don't want to hi-jack the thread so I will leave it at that.

[mr_hammer]

"Not only is it immoral to trade with them, there's also no comparitive advantage in it for the USA"

... ever notice how immoral behavior always yields undesirable results. I don't want to hi-jack the thread so I will leave it at that.

[arthurus]

the triple deficits

The deficits do not make the dollar weaker. The inflation that is used as a way to welsh on the resulting debt weakens the dollar because, of course, there are more of them competing for the same amount of goods. If we do not inflate and actually repay the debt with the same size dollar with which it was contracted, then those deficits, no matter how large, do not weaken the dollar.But the question is moot as it seems some sort of natural law that the sovereign debases the money in order to cheat his creditors when debt is high and rising.

[familyop]

"Solution: we need additional tax cuts, and even bigger CUTS IN FEDERAL SPENDING. Americans also need to stop going into debt, and START SAVING AGAIN. Finally, this will probably not happen, at least short of going to war...but we need to cut off all aid and trade with COMMUNIST/slave labor economies. Not only is it immoral to trade with them, there's also no comparitive advantage in it for the USA."

I'm not even much of an educated novice in economics, but here are my opinions. ...agreed on what needs to happen and that it probably won't. Nihilistic, spoiled people don't consider consequences of their actions and inactions.

As long as production in China is going strong, the costs of its products will rise. The price of oil will continue to rise with increasing consumption of China and other countries, causing China's exports to become increasingly more expensive. The USD must continue to fall in the long run.

One answer is to save. Another if for business managers and boards to prepare to increase the kinds of manufacturing that require hiring more common US men (the kind with testosterone and muscles). After the US labor-management fights and social policy changes of the late '70s and early '80s (the feminization of our nation), that's not likely to happen in advance. Our moneybags-that-be aren't likely to okay the necessary defense measure (Iran) in advance, either, as it would require more of the same.

So prepare for the eventual consequences. Our bosses in politics and economics aren't much like their predecessors, who perceived competition and national, traditional family values as being "healthy" for business. When real trouble comes, they'll bail to foreign hideaways, IMO.