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If the devaluation continues, U.S. may become a semi-cheap outsourcing country ... already seen some discussion on GFY about this.
On an aside, the U.S. certainly seems to be more and more of a 2nd world country compared to elsewhere in regards to standard of living and human rights.
My question is how low would the dollar have to go to start global panic? ... seems to me that as long as others keep buying U.S. debt in bulk, these currency drops will be temporary; they have been before. The alternative is far worse - not just for U.S., but for all those who borrowed large amounts, such as as China.
With that said, the day oil and other major commodities are denominated in Euros, etc that's likely the day people will hit the panic button and all hell will break loose - to digress a bit, some speculate one of the primary reasons for the U.S. staying in Iraq and cooperating with Saudi Arabia is to strongly discourage oil producers switching from dollars.
Ron
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