Worldwide Effects of Sinking Dollar

As the value of the US dollar continues its dive, observers worldwide continue to debate the consequences. The gaping US trade deficit is seen as the culprit for the devaluation, which has sped up markedly since President Bush's re-election. Most recently, concerned G20 officials called for the United States to rein in its federal deficit. As Chinese citizens, fearing a revaluation of their currency, line up to exchange their dollars for yuan, many Europeans fret that the falling dollar will bump up their export prices – thereby slowing their economic progress. As questions abound and debates heat up, all eyes remain on the dollar. – YaleGlobal