Dollar daze

With the government bailing out everyone in sight and creating dollars out of thin air faster than a magician's rabbits could multiply, it's safe to say there's been some inflationary pressure on the ol' greenback. The only thing that's kept prices stable is that folks have been feeling the pinch enough they've pulled back on spending, thus reducing demand.

But...but... spending is 8057% of our economy! So what does Uncle Sam do? Empower people to borrow MORE made-up money in order to go buy stuff. And promise to spend even MORE astronomical sums on projects we clearly can't afford.

The jig is up. The rest of the world realizes we don't feel obligated to act responsibly, because the traditional demand for the dollar as a reserve currency has always propped us up in the past. But now that they realize our actions are liable to render their mountains of dollar reserves into nothing more than toilet paper, nations like China, Japan and Russia will be sorely tempted to move their capital into something else of value. Quickly. And when that happens, demand for the dollar will plummet, even as the supply goes into overdrive at the Fed.

Remember the law of supply and demand? We may be about to witness a perfect storm of those two forces. Why, it's almost like someone's trying to pave the way for a new currency. Say, something like this: