What it means is the rest of the world refuses to accept your paper currency. Oil and everything we import will dry up if the rest of the world loses confidence in our currency. SIX MONTHS AGO, the British pound sterling was valued at about $2 USD. Now it is down to $1.43 USD, or it has lost MORE THAN 25% of its value in just six months. Imagine if the USD collapses and prices to import oil, tv’s, cars, etc go up rapidly.
The ONLY thing making the USD strong is the weakness of the British economy and the EURO zone economy. Spain estimates its unemployment could hit 20% within a year if things continue as is. The banking tsunami has crushed Iceland, is crushing Ireland and now Britain. It is only a matter of time before the world loses confidence in the Dollar. If/when that happens, all bets are off. One only need to look at gold prices to see the world is running scared of ALL paper currency.