If You Think the Dollar Is Doomed, Read This

This article talks about the prediction that the dollar will weaken in the near future. This is very important, since the United States' dollar is considered the reserve currency of the world due to its stability, security, and protection from inflation relative to other currencies. In 2008, people who invested in other countries that earned different currency were hurt because the currencies were worth less then the US dollar.

The problem will be that the growing balance deficit and trade deficit will cause the dollar to grow weaker because other countries may choose other currency as their reserve currency.

This connects to what I learned in economics that a strong dollar buys more goods in the world market, and a weak dollar allows other countries to be more willing to trade with the US. Both have its strengths and weaknesses.

http://www.msnbc.msn.com/id/30667271/