There are so many factors I believe are going on here that it is scary.
First, I truly believe that Iran, and now possibly Chavez are doing this, not so much because of the devaluation of the dollar (after all, the price just goes up), but because they want to FORCE a devaluation of the dollar. Economic warfare.
But I will also say that "our" Fed isn't doing much to slow the slide of the value either. With constant printing of more worthless (or getting there) paper money, on top of the huge and escalating debt, our dollar isn't helping itself out.
I believe we have built ourselves into an economic corner. We need more paper money to keep the economy rolling, but that same additional cash (not to mention debt incurred) is literally killing us. It is a very real picture of consumers in the US. And unfortunately, like many consumers, Bankruptcy is a very real threat. How can we continue to run into debt and not expect a fall at some point?
What are you referring to when you talk about the Fed printing money? Apparently, only 10% of money even exists as currency , so that's not the problem. Doesn't treasury control US bond issuance? I guess the fed regulates ratios of banks issuance of credit to deposits ratios. Do you know what you are talking about?
First, I truly believe that Iran, and now possibly Chavez are doing this, not so much because of the devaluation of the dollar (after all, the price just goes up), but because they want to FORCE a devaluation of the dollar. Economic warfare.