I am curious of the fallout here. What I read says that worst case a stock market crash is emminent probably preceded by rapidly rising inflation (a 1987 pattern). I suspect it will take 3 point to effect the housing markets but at some point cash is going to be a good place to be I suppose. How soon is the question.

I posted a question about this on another blog because I hadn't seen a lot about it in any of them before your post. The other reason it's not a good thing for most Americans is its effect on gas prices. One article I read said that as much as $.20 of the current price of a gallon can be traced to the decline of the dollar. Of course another question about it is the willingness of the foreign banks currently financing our current account balance to continue doing so. If that stops imaging a 300% increase in current interest rates.

Of course, about 50% of the price of a gallon can be traced to taxes...

True. The people who whine about government money for Amtrack being an evil government intrusion into something they shouldn't be doing tend to forget that there is no form of transportation in this country that isn't subsidized in one way or another. Bobby, you know what happened with Amendment 3 here in Missouri. It will be instructive to see which state programs will be cut or eliminated as a result of that. With the Republican ubermajority and its history I expect deep cuts in social programs with a strong possibility of several being eliminated entirely.

Just spent a few days in London. Dollars don't buy much. Meanwhile, the old saw about debt of the politicians was, "We owe it to ourselves!" We don't hear that too often anymore. In economic theory prices signal realities. The high prices in London are, somehow, a commentary of the value of American dollars.