It’s a commodity and like all commodities it will rise and fall based on a variety of world wide factors.
There is one thing I feel comfortable saying though and that is that for the foreseeable future the dollar will be the currency of last resort if and when the sh*t truly hits the fan.
Where do we get our oil and our cars and our.....
Am I a doomer for being real....
Does anyone see the Inflationary Spiral at the doorstep???
It already started just look at short term Treasury rates collapsing due to the flight to safety.
For instance, just try to put some money into a Schwab money market fund that is backed by US Treasuries. That option has been blocked by Schwab since August when it first 'hit the fan'.
There is a distrust of all commercial paper banks won't even lend to each other the Libor is at unprecedented levels.
A $27 billion Florida money market fund suspected to have exposure to subprime had a $10 billion 'bank run' and had to freeze further withdrawls last week.
You are right, everybody wants dollars now (except for the gold bugs).