[Travis McGee]

Second, a weaker dollar weakens the role of the U.S. dollar as the world’s reserve currency. Why should investors and central banks around the world invest in US assets when their value is steadily declining?

Very good reply. I don't think that .o1% of Americans have any idea how important your second point will be to their future standard of living.

[eyedigress]

It is a fact that when money is manufactured without wealth it will decline the value of that currency. We did that heavily during 2003-2004 and will undergo a period of over-circulation and devaluation. America will bounce back but it will involve a recession. JMHO

[LurkingSince'98]

Hi Travis!

another point about his quote: “Why should investors and central banks around the world invest in US assets when their value is steadily declining?”

Investors around the world will wait and wait and wait knowing that US assets will always be cheaper to buy tomorrow - so why buy them today. This makes for a self-reinforcing downward spiral in asset prices. Kind of like a steel sailboat that takes in too much water.

Regards,
Lurking’