NativeSon wrote:
Alongside the low value of the dollar, ......
The Department of Homeland Security is driving the dollar into the ground. Demand for the dollar is drying up as people move over to the euro.
In the old times all illicit activity around the globe was conducted in dollars. The arms trade, the drug trade, and most of the mafia type organizations did their business in dollars. Now that Homeland Security is increasingly monitoring the dollar denominated activities and strong-arming foreign governments and banks to give out names, the illegal industry has switched to euros. Only the sheiks and the chinese still take dollars and that may also change.
It used to be ok for the government to print dollars like crazy because the excess paper got spread around the world easing the inflationary pressures that could have been brought on by oversupply of money at home.
One unintended consequence of the war on terror is that the war on terror is beginning to look like war on the dollar.