Since the Spring of 2003, the US dollar has lost over one third of its value.
|Max Keiser investigates the possible demise |
of the US dollar
This year alone the dollar has fallen by over nine per cent against other major currencies.
While a declining dollar has been hailed by many American commentators as a solution to the growing US trade deficit, America's trading partners complain that they are having to pay for America's own economic shortcomings. As the dollar falls most heavily against the euro, for example, it makes US exports significantly cheaper compared to euro exports.
Speaking before the US Congress in early November, Nicolas Sarkozy, the French president, warned: "The dollar cannot remain 'someone else's problem.' If we are not careful, monetary disarray could morph into economic war. We would all be its victims."
But the most dramatic evidence of the dollar losing its currency reserve status is in the Middle East. Some Opec nations are even pressing to change the pricing of oil out of dollars.
Analyst Max Keiser reports from the Gulf.
Watch part one of this episode of People & Power on YouTube
Watch part two of this episode of People & Power on YouTubeThis episode of People & Power aired from Wednesday 19 December at the following times:
Wednesday: 14:30 GMT
Thursday (repeat): 01:30 and 13:30
Friday (repeat): 06:30 and 20:30
Saturday (repeat): 03:00
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