[Porsche-O-Phile]

Pretty much all western currencies are taking a dump right now, although I believe the magnitude and depth of the dump the dollar will take long-term will outpace that of the others (including the Euro or pound). Net effect is that the dollar will weaken relative to them.

I simply don't see how we can't keep printing Monopoly money by the trillions of dollars and not tremendously de-value our currency. Impossible.

I've pointed this out elsewhere, but there are also a lot of incentives for the government to DELIBERATELY try to weaken the dollar and devalue it too - not the least of which is being able to "offset" today's borrowing with nearly-worthless dollars tomorrow. On paper, it balances. The reality is they can pay off the debt for pennies on the dollar in terms of real value.

There's also the effect of "recovering" housing prices. The average schlub out there will only see that their place is "worth what they paid for it a few years ago" and ergo "all is right with the world again". Makes for a damn nice/convenient political self-congratulatory talking point, doesn't it?