[crghill]

But the lion’s share is held by the central banks of China, Russia and petro-powers. These countries could all too easily precipitate a run on the dollar in the current climate and bring the United States to its knees, should they decide that it is in their strategic interest to do so.

Wouldn't doing that make their holdings worthless? Or at very best, "worth less" than what they paid? Why, if they did that, wouldn't we "default" on debt held by foreign powers by declaring their actions an "act of war".

Please forgive me if these questions are ignorant. I'm just really trying to understand why countries that hold our debt would help to make that investment worthless.

[Travis McGee]

It’s called a stampede for the exit. A global “bank run” to get rid of dollars before they go to zero. Nobody will “want” to wreck the dollar. But they won’t want to ride the Titanic to the bottome either, once they perceive it as a lost cause. First out gets the most value. Once the stampede starts...

[Travis McGee]

The dollar is now testing resistance around 71-72. If it drops below 70, there will be no floor, look out below!