ARTICLE: The demise of the dollar, By Robert Fisk, The Independent, 6 October 2009
This was threatened last summer but did not happen. Still, when I read it back then I knew the crash was coming in some form because major players were saying so in the form of fears for the dollar's decline.
Does it happen this time? The only answer that matters is "eventually."
A global system can no longer operate on an undisciplinable dollar as the reserve currency, so efforts to hedge will only continue, the near term fear being America inflates its way out of severe debt.
So my old answer on the debt and trade deficit still holds: eventually the rest of the world is forced to generate a disciplining pressure we could not create on our own.
Sucks, yes, but it beats the alternative.
(Thanks: Michael S. Smith II)