Future Of The U.s. Dollar

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Future of the U.S. Dollar
Today, the world economy, after witnessing the greatest hit in 70 years, is wondering what life will look like after the storm has settled. It is grappling with the fundamentals of unemployment, increasing inflation, current account deficits, negative growth, and zero interest rates along with it, depreciating the value of money. In the midst of all this the future of the U.S. dollar is uncertain. Will the dollar maintain its reserve currency status even after its depreciation and regain faith of the nations? Or will it be replaced by some other currency, shifting the power balances among the nations forever?
The U.S. dollar peaked in value in 2000-2001 and has been in a significant decline ever since. There was a relatively brief period in 2008 when the dollar rebounded quite sharply due to the worldwide financial crisis and economic meltdown, when there was a global rush to the safety of U.S. treasury securities. But since then, the dollar has resumed its long-term downtrend. In the recent years the dollar has been improving relative to other currencies, becausee of the decline in those other currencies.
With President Obama’s most unprecedented spending plans in history, as well as trillion-dollar budget deficits and the potential to more than double the U.S. national debt in the next 5-10 years, there is now a widespread speculation that the dollar is headed for new all-time lows and a possible collapse.
As a result, we are seeing and hearing
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