Quote:
Originally Posted by Americano
Now or a year or two from now, it's still a circumstance that will extract a serious toll from a debtor nation such as the US. Imported oil is the largest single contributor to our current payment imbalance and we can only expect further currency devaluation with associated inflation as oil prices increase. That rate of supply/demand increase combined with USD devaluation will be, from a consumer viewpoint, astounding.
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Yes, the 'petrodollar' and the 'foreign currency reserve premium' have traditionally both contributed to the US dollar being both more steady and much higher valued than actual US economic statistics would warrant.
Both of these 'value boosters' to the US dollar are apparently disappearing right now, allowing the US dollar to fall to its true market value (which isn't pretty).
And yes, the future does not bode well for the US dollar at all.