Fed may not be able to defend dollar if rates remain low for too long.
This is only a scenario but if the Congress and the Fed do not mend their ways then slow but steady pace of the dollar decline is unstoppable. Everyone is looking for a crisis but steady and painless drift of dollar may pose a greater danger.

It is argued that the U.S. has sustained trade deficit for forty years and still managed to raise living standards. That is true and false. Yes, we have created two million jobs every year for the last thirty five years. But we created same number of jobs when we had 220 million citizens, in the seventies and eighties, and now when we have 300 million in the year 2006. The share of less than $15 per hour job in the labor pool has grown when total number of jobs created has not. In fact, Wal-Mart claims to create 220,000 jobs a year in this country adding up to 10% of all jobs created.