It's gonna be a bitch when USD's declining value 'frees up' all the dollars being used for business OUTSIDE of the US. Once people start exchanging these for EUROS or YEN, the dollars head back to the US and will probably cause a 1 to 2% uptick in inflation if enough flow back.
http://www.j-bradford-delong.net/mov...es/000032.html
Word of the day: SEIGNIORAGE
Seigniorage: Seigniorage is the profit which accrues to the "seigneur" when he exercises his "royal right" to coin money without the obligation to supply anything in return for the means of payment which he puts into circulation. The Central Bank, acting on behalf of the State, is the best example of modern-day enjoyment of seigniorage. To a much smaller extent, the banks also enjoy seigniorage when they create bank money through credit. In return for the interest that they receive they must bear the cost of a partial reserve in central bank money corresponding to the loans they have granted, but they also receive interest on the deposit. An argument often advanced against the world-wide privilege enjoyed by the dollar is the seigniorage it procures for the American banking system.