[GodGunsGuts]

This post is for all those who seem to think the budget deficit and trade/current account deficit doesn't matter.

[kinoxi]

Russia and the members of the Organisation of the Petroleum Exporting Countries, the oil cartel, cut their dollar holdings from 67 per cent in the first quarter to 65 per cent in the second.

I guess shunning must be some form of 'newspeak' that resembles hedging.

[ChessExpert]

I think the falling dollar is caused by the recent election results. Results were anticipated somewhat before the actual election. Current events are continuously monitored to see just how far Left we will go.

America's socialist party won. Let's consider the possible economic implications. A) We will not take full advantage of domestic oil. B) We will not take further advantage of nuclear energy. C) The government may place more emphasis on affirmative action for women, blacks, homosexuals, etc., regardless of their office productivity. D) Price controls on drugs. E) Possible take over of medical industry. F) Hikes to the minimum wage (cutting off bottom rungs of ladder of success). G) Higher taxes. H) More regulation. I) Greater unionization. K) More government giveaways. L) Printing more money M) Anti red lining legislation to criminalize those who act on differential loan default rates. N) Demonizing and criminalizing business and businessmen. I'm sure there is more. That is just off the top of my head.

Much of the world is poor because they have socialism. The U.S. is/was different in having relatively secure laws. People could become rich in proportion to their contribution. The sky was the limit. That may just go away.

The smart money is watching, as always. Will the left go hog wild and sink this country? Will the Dems display some new found economic centrism? Will Republicans hold fast to free market principles?

I don't think foreign trade or free markets are the cause of recent declines in the dollar. Political markets are, as usual, the culprit.

[NickFlooding]

The best way to fix this is to drill, drill and drill. Drill in ANWAR, off the coast of Floriduh, off the coast of Virginia and anywhere we can find oil and gas deposits. Drilling not only deprives our enemies of income is oh so sweet to our balance of trade but also leaves them (our enemies) holding the Euro bag when we are once again independent. Switching some power generators to domestic coal will help a great deal too!