Is the Dollar Dying?

It's rectangular. It's green. It doesn't dissolve after a cycle in the washing machine. The dollar is probably the most recognizable symbol of the United States’ economic strength. After the American economy emerged as the most powerful global economic force at the end of the second World War, the United States found itself the guarantor of the world's most commonly used currency. The "full faith and credit of the U.S. government" backs every note. Merchants the world over will readily forego trade in their own national currency and accept the American dollar. Nations around the world trade their oil in U.S. dollars. Such an advantage in commerce has strengthened the U.S. currency, even through times of economic turbulence. But are those days coming to an end? The United States has shown that it is willing to go to war to fight threats to the dollar. Not many people know that in 2000, Saddam Hussein, the infamous mustachioed madman of Mesopotamia, touted a new plan to trade his nation's oil exports in Euros instead of dollars. Soon after, the United States launched a war to remove Hussein. Once he was ousted, Iraq returned to trading its oil in dollars. Additionally, Libya's Moammar Ghadafi, who gave up his WMD programs after 9/11 and aided the U.S. with intelligence in its "War on Terror," also found himself on the wrong end of...

Read More