Paul Krugman on the declining almighty dollar, thanks George:
Lots of buzz suddenly about the possibility of a sharp fall in the dollar. The Canadian dollar is back at parity with the greenback; there are rumors that the Saudis are planning to diversify into euros, and maybe even that the Chinese might break the dollar peg. A nice summary at Barry Ritholtz’s blog The Big Picture.
So, according to the story, one of these days there will be a Wile E. Coyote moment for the dollar: the moment when the cartoon character, who has run off a cliff, looks down and realizes that he’s standing on thin air – and plunges. In this case, investors suddenly realize that Stein’s Law applies — “If something cannot go on forever, it will stop” – and they realize they need to get out of dollars, causing the currency to plunge. Maybe the dollar’s Wile E. Coyote moment has arrived – although, again, I’ve been wrong about this so far.
My personal opinion, and I know nothing about economics but that's never stopped me, is that the rest of the world is seeing Bush drag our economy into the shitter with him, or maybe they're just punishing us for his misdeeds, and are looking elsewhere for a stable currency standard. In any case, Bush is getting us fucked over as he oversees the decline of the United States. Happy legacy, fuzznuts.