GreyWolf

You could have a word with the China Bank of China and around 30 other nations lending funds to the US and ask them for a 10 year freeze on interest payments Maybe that would cause an upwards blip on the dollar..

Seriously - fat chance in the foreseeable future of the US dollar being in shape. The underlying problem is deeply embedded and started decades ago. It's not likely to change much irrespective of what the government does.

Forgetting any war costs, when a nation buys more than it can pay for and supports this overspending over a prolonged period of time by external loans and appears unable to produce a positive trade balance in 30+ years - it's inevitable there will be a problem. In approx the last 10 years the govt has added another $10K debt for every citizen, and this is now around $32K-$34K per person - the highest govt debt on the planet.

On an individual/personal level the workforce have been spending more than they earn - this has varied, but up to 1.5 times more than earnings. This excess spending was supported by using home equity as an ATM, but, that has changed considerably and excess spending is now supported by credit card debt. Personal debt eventually has to have a payback time and there is no evidence of any "bonus earnings" to repay. Property foreclosures are already dramatically up on previous years and this is likely to continue in the coming years.

The symptoms are "debt", but the reason for these symptoms are many. Half the trade deficit is due to oil imports - for a nation with 5% of the world's population to consume around 50% of oil production is a joke - especially when most of that oil is not used to generate further wealth via industry, but expended on vehicle consumption. "Over consumption" is also the keyphrase for many other problem areas.

Only my but can't see any significant earners for the US to work it's way out of this level of debt. If an effort was made to increase the currently weak manufacturing industry to a level where it would impact trade deficits, this would involve billions in investment, but these billions do not exist. It's hard not to see the US as a stagnant corporation living off increasing loans from bankers and just repaying interest, and with steadily declining share values (read currency exchange).

Overall, this is a problem, not just for the US, but worldwide. Asian manufacturers are revamping their dollar price lists daily to reflect lower US dollar values (and not losing out). At a future time, and if the dollar continues to weaken, OPEC may elect to base oil on another more stable currency - this would be a serious major hit to the dollar.

As far as the adult industry is concerned (and everything takes longer to happen than we may like), processing will shift more towards economically stable regions and with added features of multi-currency subscriptions etc - tho this already exists with a few processors. Why should any webmaster earn eg 50% of what they should be earning in a UK example of $2 to one pound sterling? The Big Mac Index will eventually apply to compensate for low value currencies.