The dollar may not decline againt other currencies, but still may wind up heavily devalued.
IOW, 5 years from now, the dollar may still buy (approx.) .8 Euros and/or 100 Yen, but it may take 10 dollars to buy a loaf of bread or 5,000 dollars to buy an ounce of gold.
See what I'm sayin'?
Dollar vs. the Euro, Yen, Pound etc. is good for currency traders, but not very good for determining real value.
Yes I understand. However, its best not to extrapolate the events of today out 5 years. Right now the likelihood is that the growing economy is going to grow federal receipts and the republicans will return with a vengeance this fall and spend the next year cutting the federal budget.
What happens to the dollar when the deficit goes from 1.5 in trillion in 2010 to 1 trillion in 2011 to .6 trillion in 2012.
I don’t know. But it wouldn’t be prudent to think that things will remain the same.