Quote:
Originally Posted by Brad Gosse
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Good graphic.
One other disturbing dimension regarding the dollar's drop: the US enjoys lower inflation since many countries hoard dollars instead of sending them back to the US to circulate. This has the effect of lowering inflation in the US due to less greenbacks in circulation. However, if the countries hoarding start circulating it back to the US, this inflation lowering effect is gone. With inflation being stoked by higher fuel and commodity prices, the US can't afford yet another cause of inflation.